CHINA STATE ENTERPRISE REFORM - AN OVERSEAS PERSPECTIVE

The author is an economist specializing in the study of China. What fo llows is a personal view of the circumstances of state industrial ente rprises that focuses on two key aspects of the present situation: low returns to capital and the process of building market-supporting insti tutions. The paper includes an initial overview, brief analysis of the two key issues, and a series of possible policy choices for raising r eturns to capital and accelerating the development of market-supportin g institutions.