Private Sector Development in the People's Republic of China

Over its 25-year transition from a centrally-planned economy to a more market-oriented economy, a number of private enterprises have emerged and are now playing a critical role for the Chinese economy.

This paper intends to

• examine the historical and current development of the private sector in the PRC
• identify its characteristics and the bottlenecks to further private sector development
• identify policy implications based on a wide range of data analysis, practical studies, and mathematical models to illustrate the behavioral pattern of private enterprises as well as state-owned enterprises.

The views expressed in this paper are the views of the author/s and do not necessarily reflect the views or policies of the Asian Development Bank Institute nor the Asian Development Bank. Names of countries or economies mentioned are chosen by the author/s, in the exercise of his/her/their academic freedom, and the Institute is in no way responsible for such usage.

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