China’s steel mills concerned by Beijing’s focus on private sector

When the current Chinese leadership took office in 2013, there was much talk about China’s economy becoming more market-driven, entrepreneurial and less reliant on the state. But the country appears to have been moving in the opposite direction in recent years and now Beijing seems to be trying to exert greater control on the country’s private sector. Like most of China’s economy, privately-owned steel producers do not enjoy the same benefits as their state-owned rivals. One benefit they do possess, however, is flexibility. Therefore, potentially being subject to greater controls – having their wings clipped to a certain extent – is unsurprisingly receiving mixed reactions. According to China Chamber of Commerce for Metallurgical Enterprises, private steel mills produced 264 million mt of crude steel in the first half of 2018, accounting for 58.55% of total output. This makes the private sector an extremely important part of the steel landscape in China. Last month, Qiu Xiaoping, vice minister of the Ministry of Human Resources and Social Security, rattled a few cages by saying in a speech that privately-owned companies must improve their “democratic management” to ensure greater employee participation and wider profit distribution. To achieve this, private enterprises must adhere to… continue reading

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Source: CTRM Center

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