Law Ex Post and as Obstacle
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.
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