A blessing or a curse?

Haiming Hang




Since 1978, China has gradually increased its links with the rest of the world, with its accession to the World Trade Organization (WTO) in 2001 the climax of the process (Buckley et al., 2007). However, reintegration into the global economy has not been an easy task because China was isolated from the world for nearly three decades. In addition, China was used to a centrally planned system, and thus moving towards a free-market system created new challenges. For example, one of the key tasks of its recent economic transition was to modernize Chinese state-owned enterprises (SOEs). In order to achieve this aim, in the 1980s and 1990s the Chinese ...

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