Contemporary Chinese Political Economy and Strategic Relations: An International Journal (Apr 2021)
The Rise and Fall of China’s Private Sector: Determinants and Policy Implications
Abstract
On 3rd November 2020, Ant Group’s world record-setting initial public offering in Shanghai and Hong Kong was surprisingly suspended. In fact, there have been major shifts regarding China’s policies toward the privately-owned enterprises (POEs) recently. This study aims to examine the factors behind the rise and fall of Chinese POEs. Based on a Robust Least Squares model, this study finds that China’s economic freedom and economic conditions are significantly associated with the growth of POEs. At last, this study discusses recent policies and the implications to the Chinese economy.
