同济大学：《创业学》课程教学资源（教案讲稿）02 Who are China's New Private Entrepreneur？

月大学 TONGJI UNIVERSITY Who are China's New Private Entrepreneur? Dr. Pan Xuan School of Economics and Management Tongji University

Who are China's Who are China's Who are China's Who are China's New Private Entrepreneur? New Private Entrepreneur? New Private Entrepreneur? New Private Entrepreneur? Dr. Pan Xuan School of Economics and Management Tongji University

同濟大学 TONGJI UNIVERSITY The Starting Point 1978,China's industry was made up of thousands of simllar,publicly owned organizations. urban and middle- 95%of output Rural sized enterprises Collectives Urban very small firms <5%of output Collectives SOEs multiplant not exist corporatlons 2

2 The Starting Point The Starting Point The Starting Point The Starting Point • 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly 1978, China's industry was made up of thousands of similar, publicly owned organizations. owned organizations. owned organizations. owned organizations. % of Industrial Output (1978) % of Industrial Output (1978) % of Industrial Output (1978) % of Industrial Output (1978) 77% 14% 9% SOEs Urban Collectives Collectives Collectives Collectives Rural Collectives Collectives Collectives Collectives urban and middle- urban and middle- urban and middle- urban and middle￾sized enterprises sized enterprises sized enterprises sized enterprises > 95% of output > 95% of output > 95% of output > 95% of output very small firms very small firms very small firms very small firms < 5% of output < 5% of output < 5% of output < 5% of output multiplant multiplant multiplant multiplant corporations corporations corporations corporations not exist not exist not exist not exist

同濟大学 TONGJI UNIVERSITY In the First Period of Transition(1978-1996) By 1996,China had developed a tripod industrial structure:state, collective,and private(domestic and foreign)firms each produced about 1/3 of total output. Ownership composition of industrial output(percent of current-price output) 1978 1996 State-owned enterprises 77 33 Collective enterprises 23 36 (of which:TVEs) (28) Private and household 0 19 Foreign invested 0 12 (of which,foreign nationals invest) (of which,Hong Kong and Taiwan)

3 In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) In the First Period of Transition (1978-1996) • By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, By 1996, China had developed a tripod industrial structure: state, collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about collective, and private (domestic and foreign) firms each produced about 1/3 of total output. 1/3 of total output. 1/3 of total output. 1/3 of total output

同濟大学 TONGJI UNIVERSITY From 1996 Through the Present A milestone was the adoption of the Company Law in 1994,provided a framework for "corporatizing"SOEs,signaled the beginning of a new round of institutlonal change. traditional SOEs converted into corporation corporation provided an option for new hybrid ownership form the distinct boundaries between ownership forms began to blur

4 From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present • A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a A milestone was the adoption of the Company Law in 1994, provided a framework for "corporatizing" SOEs framework for "corporatizing" SOEs framework for "corporatizing" SOEs framework for "corporatizing" SOEs, signaled the beginning of a new signaled the beginning of a new signaled the beginning of a new signaled the beginning of a new round of institutional change. round of institutional change. round of institutional change. round of institutional change. traditional SOEs converted into corporation corporation provided an option for new hybrid ownership form the distinct boundaries between ownership forms began to blur

同海大学 TONGJI UNIVERSITY From 1996 Through the Present Sep.1997,15th Communist Party Congress: "grasping the large, attentions were focused on the largest, typlcally centrally controlled firms -and letting the small go" great arthority was given to local government to restructure /privatize/close down their own firms .massive downsizing of state sector,tens of thousands of SOEs and urban collective firms were shut down,laid-off workers totaled 40%of the SOE workforce ,and >2/3 that of the urban collective

5 From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present • Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: Sep.1997, 15th Communist Party Congress: •massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban massive downsizing of state sector, tens of thousands of SOEs and urban collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE collective firms were shut down, laid-off workers totaled 40% of the SOE workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. workforce ,and >2/3 that of the urban collective. "grasping the large, "grasping the large, "grasping the large, "grasping the large, •and letting the small go" and letting the small go" and letting the small go" and letting the small go" attentions were focused on the largest, attentions were focused on the largest, attentions were focused on the largest, attentions were focused on the largest, typically centrally controlled firms typically centrally controlled firms typically centrally controlled firms typically centrally controlled firms great arthority was given to local great arthority was given to local great arthority was given to local great arthority was given to local government to restructure government to restructure government to restructure government to restructure /privatize/close down their own firms /privatize/close down their own firms /privatize/close down their own firms /privatize/close down their own firms

同濟大学 TONGJI UNIVERSITY From 1996 Through the Present Ownership composition of industrial output(above-scale industry),percent 1998 2004 SOEs and corporations controlled by the state 49.6 38.0 Joint-stock corporations 6.4 42.1 Foreign-invested enterprises 24.7 30.8 Collective enterprises 19.6 5.3 the statistical system began to change in 1998,only Information on "above- scale"firms were collected. the category of joint-stock companies (row 2)overlaps with that of state ownership(row1) 2003,SASAC was designated as the agency responsible for exercising the government's rights of ownership of nonfinancial firms

6 From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present From 1996 Through the Present • the statistical system began to change in 1998, only information on "above- the statistical system began to change in 1998, only information on "above- the statistical system began to change in 1998, only information on "above- the statistical system began to change in 1998, only information on "above￾scale" firms were collected. scale" firms were collected. scale" firms were collected. scale" firms were collected. • the category of joint-stock companies (row 2) overlaps with that of state the category of joint-stock companies (row 2) overlaps with that of state the category of joint-stock companies (row 2) overlaps with that of state the category of joint-stock companies (row 2) overlaps with that of state ownership(row1) ownership(row1) ownership(row1) ownership(row1) • 2003，SASAC was designated as the agency responsible for exercising the SASAC was designated as the agency responsible for exercising the SASAC was designated as the agency responsible for exercising the SASAC was designated as the agency responsible for exercising the government government government government’s rights of ownership of non s rights of ownership of non s rights of ownership of non s rights of ownership of nonfinancial nancial nancial nancial firms

同濟大学 TONGJI UNIVERSITY Share of non-state economy,Present Ownership composition of industrial profit* (above-scale industry),% Profits % (BIlllon Yuan) Total above-scale industry 3882.8 SOEs and corporations controlled by 1192.4 30.7% the state Collective enterprises 68.9 1.8% Joint-stock corporations 2110 54.3% Foreign-invested enterprises 1113.1 29.1% Privete enterprises Nov.2010 1043 26.9% 7

7 Share of non-state economy, Present Share of non-state economy, Present Share of non-state economy, Present Share of non-state economy, Present Ownership composition of industrial profit* (above-scale industry), % Profits Profits Profits Profits (Billion Yuan) (Billion Yuan) (Billion Yuan) (Billion Yuan) % Total above-scale industry 3882.8 SOEs and corporations controlled by the state 1192.4 30.7% Collective enterprises 68.9 1.8% Joint-stock corporations 2110 54.3% Foreign-invested enterprises 1113.1 29.1% * This data covers Jan. to Nov. 2010. This data covers Jan. to Nov. 2010. This data covers Jan. to Nov. 2010. This data covers Jan. to Nov. 2010. Private enterprises 1043 26.9%

同濟大学 TONGJI UNIVERSITY China's corporate world is dlvided into... Revitalized state- Globalizing Players owned enterprises Emerging innovation Restless SMEs start-ups

8 China's corporate world is divided into... China's corporate world is divided into... China's corporate world is divided into... China's corporate world is divided into... Revitalized state￾owned enterprises Globalizing Players Restless SMEs Emerging innovation start-ups

同濟大学 TONGJI UNIVERSITY Who are the New Private Entrepreneurs? The new private entrepreneurs(NPEs)in China refer to businessmen who have owned private capital during the country's economic transition since 1978. 钥润百富 福布斯 HURUN REPORT Forbes ■FORBESCHINA.COM Rupert Hoogewerf(Chinese:胡润，Hirùn),born in 胡到司 1970 in Luxembourg,is the publisher of the Hurun Report,a monthly magazine best-known for its"China Rich List",a ranking of the wealthiest individuals in China

9 Who are the New Private Entrepreneurs? Who are the New Private Entrepreneurs? Who are the New Private Entrepreneurs? Who are the New Private Entrepreneurs? The new private entrepreneurs (NPEs) in China refer to The new private entrepreneurs (NPEs) in China refer to The new private entrepreneurs (NPEs) in China refer to The new private entrepreneurs (NPEs) in China refer to businessmen who usinessmen who usinessmen who usinessmen who have owned private capital during the country have owned private capital during the country have owned private capital during the country have owned private capital during the country’s economic transition s economic transition s economic transition s economic transition since 1978. since 1978. since 1978. since 1978. Rupert Hoogewerf (Chinese: 胡润，Hú rùn), born in 1970 in Luxembourg, is the publisher of the Hurun Report, a monthly magazine best-known for its "China Rich List", a ranking of the wealthiest individuals in China

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