Freeman Report July 2005 - Vol. 3, No. 7

The recent uproar over the CNOOC-Unocal deal gives us the chance to delve into a far deeper –for the future of the Chinese economy and U.S.-China relations – much more important question: what is the real nature of large, reforming state-owned companies in China? China has pressed on with unprecedented economic reforms, leaving most of its communist past far behind. However, China’s state-owned enterprises (SOEs) still face massive problems, and are in critical need of reform. Can China model the Swedish experience of restructuring SOEs in the late 1990s?