The Chinese state is withdrawing from industry at speed. A sale of state assets of huge proportions began in the early 1990s. Most small and medium–sized state–owned enterprises (SOEs) have already been sold, the majority to their own staff, as have township and village enterprises. Large firms, particularly in strategic sectors, are being treated differently. The government is selling stakes in some, but the largest and best firms are being retained, and new state agencies and incentive mechanisms are being used to boost their performance. This volume, drawing on the research of ten scholars from around the world, is the first book–length work to examine and evaluate China’s privatization experience. It tackles a number of important questions. What factors determine the decision by government officials to sell or retain their firms? How efficient and fair is the sale process? How credible is the government’s ambition to create world–class state–owned conglomerates?

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