China's SOE reforms in the 2000s and 2010s

In the 2000s and 2010s, there is an influential phenomenon called “state advance and private retreat” in China’s SOE reforms in strategic industries related to the production and processing of petroleum, ferrous metals, tobacco and telecommunication. Although some indicators have shown SOEs’ decreasing proportions in these industries, considering SOEs’ paid- in capital and assets, the tide of state advance and private retreat does exist in the strategic industries. There are four variables influencing state advance and private retreat. For interest groups, the government-SOEs relationship cannot explain the existence of state advance and private retreat in the 2000s and 2010s since this relationship also existed before the 2000s. As SOEs’ strong representative in policy-making process, the SASAC has greatly contributed to SOEs’ march in the market after its establishment in 2003, while at the same time, private enterprises do not have enough access to policy making process. For political elites, differences between Jiang- Zhu leadership and Hu-Wen leadership are one of the causes. As for institutional factors, both the fiscal and financial systems have increased SOEs’ advantages in market competitions. For influential event, “Lang Whirlwind”, China’s accession to the WTO, and the 2008 financial crisis in the 2000s all greatly contributed to the emergence of state advance and private retreat. Arts, Faculty ofPolitical Science, Department ofGraduat