1. The Main Ideas
• the main idea of the section is that during the
transition the Chinese government granted
authority to soe’s(state-Owned Enterprises) to
determined the quantity and variety of their
outputs.
• the main idea of this section special economic
Zones is that the government use seZ’s(special
Economic Zones) to open foreign investments,
private ownership, and international trades.
•the main idea of this section development of
Supporting Institutions is the government reforms
the buildings in China to strengthen the market
system and its macroeconomic control.
•the main idea of this section transformation of the
soe’s is that the chinese reformers turns to making
state-owned enterprises more “corporate-like”.
2. Examples to explain the
Main Ideas!!
• Reform of Urban Industries: Examples to explain the
idea is that they(government) uses their own
employment decisions, retain much of their net
revenues, the government also extends the two track
system of prices to non agricultural products. Urban
collectives are enterprises owned jointly by managers
and their work forces.
• Special Economic Zones: Examples to explain the idea
are which they use seZ’s are mostly located and use in
coastal regions, these special zones attracted
increasing amounts of foreign capital ( particularly
from hong kong). the seZ’s in china’s southern
provinces, became booming enclaves of the “near-
capitalism”.
• Development of Supporting Instsitutions- Examples are
“net revenue transfers” from state enterprises!
• transformation of the soe’s- Examples are providing
employment, housing, health care, and daycare.
