The Rise Of Private Business In China Over State-Owned Companies, In Two Charts

A Shanghai market. China Photos/Getty Images

The latest East Asia Pacific Economic Update from the World Bank, including growth forecasts on the region, is out.

Among the forecasts is a series of charts on how state-owned enterprises (SOE) in China are losing their hold on assets.

The current SOE 42% share is declining as the private sector gains in importance.

And the profitability of SOEs is increasingly lower than that of private enterprises.

The decreasing dominance of SOEs is even more visible in the labor market. The share of SOE employment dropped from 60% percent in 1990 to 18% in 2012.

The World Bank’s latest East Asia Pacific Economic Update forecasts a moderate easing of economic growth in China to 7.6% percent in 2014 and to 7.5%.

The authorities are committed to structural reforms including includes financial sector reforms, deregulation of the services sector, further improvements in social insurance, reforms to the fiscal framework, a more decisive role for the markets, and continuing SOE reform.

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