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Enterprising ChinaBusiness, Economic, and Legal Developments since 1979$
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Linda Yueh

Print publication date: 2011

Print ISBN-13: 9780199205837

Published to Oxford Scholarship Online: April 2015

DOI: 10.1093/acprof:osobl/9780199205837.001.0001

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Private Firms

Private Firms

Law Ex Post and as Obstacle

(p.187) 6 Private Firms
Enterprising China

Linda Yeuh

Oxford University Press

This chapter focuses on the legal and institutional factors that shaped the development of the entrepreneurs in China. The non-state sector has been a strong driver of China's growth and outweighed the importance of state-owned enterprises (SOEs) in generating industrial output by the late 1990s. Private firms benefited from the corporatization transformation of enterprises and became shareholding companies under the Company Law. As a result, private firms largely operated without guidance from laws or policies, and often at a disadvantage to SOEs.

Keywords:   China, entrepreneurs, state-owned enterprises, SOEs, private firms, Company Law

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