Zhu’s Record: SOE Reform

Zhu confronted China’s ancient and dilapidated State-Owned Enterprise system, letting some fail, bailing out others, and gradually pushing the economy in a more private direction. But Zhu hesistated to call his plan a “privatization,” fearing that rapid reform could lead to an East German or Soviet-style collapse.

Beijing University Economist Yao Yang discusses this euphemism:

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