China’s remarkable economic performance during the last two decades
has rightly been hailed as an economic miracle. In this article,
I briefly summarize the sources of the miracle, outline the serious
problems China still faces because of the continuing financial repression
necessitated by its unreformed and inefficient state-owned enterprises
(SOEs), and provide a possible solution based on an efficient
use of China’s burgeoning foreign exchange resources.
Topic:
Privatization, Finance, Economy, and State-Owned Enterprises