Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：0  发布时间：2026-04-19

Lu Guanqiu was selected as a "typical example of common prosperity" for enthusiastic reporting and praise, which happened in such a situation. The fact is that for many years to come, local governments will firmly hold this view, and at the same time, almost all township enterprise operators have pledged to undertake these responsibilities and functions in order to obtain government support and resources. Therefore, local governments have sent a large amount of resources to those township enterprises at low cost or even free of charge.

This trend accelerated after 1992, as township enterprises that were good at utilizing and occupying government resources rapidly grew and completed property rights clarification in various strange ways. More than a decade later, Lu Guanqiu and his Wanxiang Group became one of the largest private companies in China.

This is the "hidden rule of wealth" for entrepreneurs who became rich by establishing township enterprises - they fully utilized the eagerness and naivety of governments at all levels, using the creation of public wealth and the assumption of social functions as reasons and commitments to obtain low-cost policy support. Compared with state-owned enterprises in cities, they have institutional flexibility, and the low cost of land and labor gives them stronger competitiveness. Objectively speaking, these township enterprises have indeed activated the local economy, provided a large number of employment opportunities, and driven the local people onto the path of industrialization.