China’s Industrial State-owned Enterprises: Between Profitability And Bankruptcy

After decades of declining profitability, China’s industrial state-owned enterprises appear obsolete. This study relies on extensive data and quantitative analysis to examine the reasons for the decline in profitability, to ascertain their current profitability patterns across various dimensions, and to account for any profitability gap with enterprises in other ownership forms. Recent reform measures are also evaluated. A differentiated picture emerges which seeks to make past developments comprehensible and illuminate the prospects of the reform of industrial state-owned enterprises in China.