This is not a good sign. If the state-owned enterprises are being dismantled then it is going the way of the Soviet Union just before it collapsed. Immiseration and vast inequality followed, with gangster capitalists owning everything and the masses deeply impoverished.
State-owned enterprises must make more efforts to cut costs and improve efficiency in order to face the harsh economic conditions in the next three to five years, China’s state assets watchdog said.
“After 30 years of rapid development, the Chinese economy has come to a period of contraction,” Shao Ning, vice-director of the State-owned Assets Supervision and Administration Commission (SASAC), said at a recent meeting in Chongqing.
“During a contraction, cost factors play a more obvious role in a company’s development,” Shao said.
The SASAC said the global economy will suffer from a long-term depression due to the eurozone crisis and shrinking demand in international markets.
Meanwhile, domestic issues of unbalanced and unsustainable development remain, and an increasing downward pressure on economic growth is highlighting more potential risks.
As a result, SOEs must be fully alert of the gravity and urgency of the current situation and prepare for “winter conditions” in the next three to five years, it was said at the meeting.
So far, 106 SOEs have established special offices to improve the efficiency of their management activities.
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