Understanding China, One Blog at a Time

An American in China

China and the Communist Involvement in Business

Posted by w_thames_the_d on February 19, 2011

From “The Party” (Richard Mcgregor)

Huang did reach one conclusion–the pure private sector in China at the end of the twentieth century, companies with no government ties or involvement at all, was ‘minuscule’, equal to about 20 per cent of all industrial output. The confusion about what is public and what is private is a deliberate result of the system’s lingering wariness about clarifying ownership. Ask any genuine entrepreneur whether their company is private, or ‘siying’, literally, ‘privately run’, it is striking how many still resist the description in favour of the more politically correct tag ‘minying’, which means ‘run by the people’. In a people’s republic founded on a commitment to abolish private wealth, an enterprise which is ‘run by the people’, even if it is owned by an individual, is more favoured than a company that parades itself as purely private. Most economists now skirt the issue, by dividing companies into two categories, state and non-state, and leave it at that.

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