Chinese private enterprises

The Chinese chemical industry is still at an early stage of development and is highly fragmented. Almost 14,000 companies compete, with state-owned Sinopec and PetroChina the most dominant players. State-owned enterprises are, however, being replaced increasingly by private enterprises. In only four years, the share of private companies in the sector has grown from 23 to 33 percent. 

In view of these kinds of data, the Chinese authorities have proved themselves quick studies. They understand very well how the rising private sector has taken up the slack from the legacy SOEs. In response, they moved virtually 180 degrees from their early hostility to private enterprise to robust policy support. It is also this support which is critical to China s movement up the value chain, and is the focus of the balance of this chapter. 

It is estimated that domestic Chinese private companies now account for some 30% of China s GDP. If we add to that the more than 20% from FIEs, and probably another 20% from TVEs, we are looking at an economy already powerfully dominated by non-state-owned enterprises. 

More specific to the area of manufacturing SC, Pyke et ah (2000) undertook a survey of state-owned, collectively owned and privately owned enterprises in order to understand the status of SCM in Chinese manufacturing firms, for example, how sophisticated were... 

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