China’s State-owned Enterprises and Competitive Neutrality

HKUST IEMS Thought Leadership Brief No. 54


Alicia García-Herrero and Gary Ng

Whether or not China adopts the principles of competitive neutrality in its huge market is important for China and for the rest of the world. The advantageous position of SOEs in China results in a poor competitive business environment, with the automotive sector being furthest away from competitive neutrality General and sectoral trends point to private firms being unable to leverage as much as SOEs A working measure of competitive neutrality could help improve the level playing field for foreign companies in China. The concept could even be introduced in a potential reform of the World Trade Organisation.

About the authors

Alicia García-Herrero is the Chief Economist for Asia Pacific at Natixis. She also serves as a Senior Fellow at European thinktank BRUEGEL and a non-resident Research Fellow at Real Instituto Elcano think tank. She is currently an Adjunct Professor at the Hong Kong University of Science and Technology. She is also a Faculty Associate of HKUST IEMS. More >>

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