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I. IntroductionSince economic reform and an opening-up in 1978, the Chinese government has decentralized its state-owned enterprises (SOEs) system in the centrally planned economy. The separation of government administration and enterprise management is moving China toward a market-oriented economy, forcing Chinese enterprises to become more competitive and more efficient. Market forces of supply and demand are intended to govern firms’ industrial production, which is no longer subject to government planning and control.
I. IntroductionSince economic reform and an opening-up in 1978, the Chinese government has decentralized its state-owned enterprises (SOEs) system in the tubular planned economy. The separation of government administration and enterprise management is moving China toward a market-oriented economy , forcing Chinese enterprises to become more competitive and more efficient. Market forces of supply and demand are intended to govern firms’ industrial production, which is no longer subject to government planning and control.