Abstract
This paper provides an overview of the reforms in the state owned sector in China, with particular attention to the iron and steel industry. It examines whether the currently practised Modern Enterprise System (MES) has resulted in the distancing of the government from the management of state owned enterprises. Although some of the problems of conflict and diffused responsibility appeared to have been solved by the new system, and the sector is apparently quite successful, some unintended consequences were noted in this empirical research study.
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