Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：19  发布时间：2025-10-28

Looking back at the reform of state-owned enterprises throughout the 1980s, we found that there was a strategic deviation in the focus of promoting enterprise reform: the owners of state-owned capital focused on the reform of internal management systems, while in fact, the biggest change at that time occurred in the circulation of goods.

Faced with the active and chaotic circulation process, the central government is caught in a dilemma.

On the one hand, "dumping masters" and various private trading companies have disrupted the planned system of commodity circulation, causing chaotic price increases and inflation. So, during this year, Beijing repeatedly issued an "emergency notice" in July, jointly issued by the State Council and the Central Commission for Discipline Inspection, strictly demanding that "we resolutely stop the two unhealthy trends of arbitrary price increases and arbitrary distribution". In October, these two institutions issued another notice, requiring "resolutely stopping illegal and disorderly activities in the supply of agricultural production materials". The objective effect of these two "notices" is that for the "villains" with backgrounds, although there is deterrence, it cannot be prohibited at all. For those "honest and obedient" state-owned enterprises, they dare not take their own initiative and shrink into the framework of the planned system.