According to an article in the China Daily yesterday, China is taking measures to encourage the growth of the private sector within the mainland in many industries including telecommunications. Though the government holds that there is no problem where one sector (private versus public) harms the growth of the other.
As more Authoritarian states would approach this, the published 36 new guidelines that they believe will encourage the growth. The guidelines are still vague enough that many levels of the government can exert control over the entry to the private sector for new companies and allows many loopholes for corruption but at least they seem to be trying? Is that good enough for a world super power?
I find it hard to imagine that China is really letting the reins loose to let industry forge it's own place. However, when industries are deemed the "national champions," it isn't that China wants to loose control over the industries it is that it needs the industries to turn a profit without simply relying on heavy government subsidizes, though instead I believe they opened even more tax incentives and subsidizes for industry.
Read the full Article bellow on the China Daily Website.
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