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By A . Donedu

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In 2001 through 2003, non-state-owned enterprises in high-tech industry experienced a swift growth. 5 Restructuring non-state-owned enterprises and market-oriented operation Non-state-owned sectors of the economy is an outcome of market, with typical market-oriented behavior. As an example, large non-state-owned enterprises will used to describe the market-oriented operations in non-state-owned sectors. Large Calculations based on the data as given in the China Statistical Yearbook of 2004, Report on the Development of China’s Enterprises (2002–2004) and China Taxation Yearbook 2004.

In May 2003, the State Council promulgated the Interim Regulation for Supervision and Administration of State-owned Assets of Enterprises, which standardized by law the government’s intervention in stateowned enterprises, clarified the duty and responsibility of the central government and local governments as investors, and established the basic system for division, consolidation, bankruptcy, equity exchange, and so on of state-owned enterprises by putting forward the requirements for ensuring that enterprises operate independently and their production and management activities are free from intervention.

4. Whether in total volume or structure, price subsidies are far greater than subsidies to state-owned enterprises for their losses, and constitute a main part of subsidies. 80 Source: China Statistical Yearbook of relevant years, China Statistics Press. 70 18 Assessing the Extent of China’s Marketization With the gradual improvement in market mechanism, China’s price subsidies as a percentage of GDP saw a continuous decline. 5. Since the scope of price subsidies is extremely limited and the amount is accordingly small, therefore, in the field of commodity transactions, the market prices started to become the main signal for resource allocation in 1992.

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