The Political Economy of Chinese-Style Privatization: Motives and Constraints

Table 1. Official Ownership Composition of Chinese Industrial Enterprises in Terms of Output and Employment (Year-End 2001)

Type of Enterprise	Share of Industrial Output, %	Value of Output, $bn	Employment, %
State-owned Enterprises	22.70	134.7	24.15
Collective enterprises	10.66	63.3	17.65
Publicly-listed companies	12.2	72.5	5.88
Limited-liability companies	10.18	56.5	9.52
Others	0.59	3.5	0.76
Domestic Collectives	33.63	195.7	33.81
Joint-stock co-operatives	2.93	17.4	3.88
Private enterprises	14.29	84.9	22.6
Domestic private firms	17.22	102.2	26.40
HK/Taiwan joint ventures	7.05	41.9	4.5
HK/Taiwan wholly owned ventures	4.97	29.5	4.96
Foreign joint ventures	9.29	55.2	3.56
Foreign wholly owned	5.13	30.5	2.55
Overseas firms	26.44	155.3	15.57
Private Sector:	43.66	257.5	41.97

Sources: China Statistical Yearbook 2002, World Bank World Development Index (online).

Table 2. Estimated Contribution to China’s GDP by

Ownership Types (1998-2003, %)

Year	1998	1999	2000	2001	2002	2003
State Sector	41	40	39	38	36	34
Non-State Sector	59	60	61	62	64	66
Collective	10	10	8	8	8	7
Domestic Private	26	26	28	29	31	34
Foreign Private	5	7	8	9	9	10
Agriculture	18	17	17	16	16	15

Source: Adapted from Table 1.2 in Garnaut et al (2005, p.10).

Note: ‘Foreign Private’ includes Hong Kong and Taiwanese firms and investment.

Table 3. Estimated Contribution to Value-added in Non-farm Business Sector by Firm Ownership (1998-2003, %)

Year	Private	Collective	State Controlled
1998	43.0	16.5	40.5
1999	45.3	14.7	40.1
2000	47.7	12.7	39.6
2001	51.8	11.2	37.1
2002	54.6	10.1	35.2
2003	57.1	8.8	34.1

Source: Adapted from Table 2.1 in OECD (2005, p.81).

Notes: a. ‘Non-farm Business Sector’ excludes agriculture and government/non-profit services, such as health care and education. It was equivalent to 76% of GDP in 1998 and 79% in 2003.

b. ‘Private’ includes both domestic and overseas private firms and investment.