Wednesday, September 1, 2021

Chinese State-Owned Enterprise Lessons for Africa

 The South African Institute of International Affairs published in July 2021 a study titled "Lessons for Africa in Chinese SOE Governance" by Luke Simon Jordan.

SOEs in China earn a lower return on assets than private enterprises and absorb a disproportionate share of credit.  On the other hand, they operate in lower-return but economically necessary sectors, and shoulder a range of difficult-to-price externalities.