Barry Naughton Quoted on China's State Enterprises
China's State Enterprises Have to Pay Up
05/17/2012
Dexter Roberts,
Bloomberg Businessweek
The Chinese are experts at letting important news slip out quietly. The latest example: a May 4 announcement made during annual bilateral talks with the U.S. that the SOEs will increase the amount of dividends they pay to their owner, the state.
Some 100,000 government-owned and -controlled enterprises use their favored status and ready access to cheap land, loans, and energy, to become ever more powerful. If they can hold onto most or all of their earnings, they can tighten their grip on the economy. If the central government can coax higher dividends out of them, it can better fund badly needed social programs—and weaken the SOEs as well.
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Barry Naughton is Sokwanlok Chair of Chinese International Affairs. He is the professor of Chinese Economy at the School of International Relations and Pacific Studies. His work focuses on issues relating to industry, trade, finance, and China's transition to a market economy. Recent research emphasizes on regional economic growth in the People's Republic of China and the relationship between foreign trade, investment and regional growth.
