Crown corporations weigh more heavily in the economy

Public enterprises, which are inefficient, still enjoy privileged conditions.

The plan launched in 2013 by Xi Jinping, a year after coming to power, was intended to instill liberalism in the Chinese system while maintaining the authority of the communist state in the economic sphere. Seven years later ““ Technical ”changes were made to improve the efficiency of the system. But there was no structural reform. The authorities did not intend to modify the Chinese economic model ”, summarizes Jean-François Dufour, director of the consulting firm DCA Chine Analyze. The pandemic, by strengthening the state control of the system and the weight of the public sector, has not changed the situation.

The fear of “instability” has held back most of the reforms, underlines a study by the Rhodium economic research group. Progress has taken place, in the budgetary situation of local authorities, for example. Or in innovation, on the rise despite low investment efficiency. But, in the labor market, progress is weak, points Rhodium. “The gap

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