Response to Shin’s
Historically, mixed economies emerge gradually in many countries including China. China’s mixed economy is widely characterized by the coexistence of market systems such as the private sector and the government-planned system (Naughton, 2006). The traditional planned economy in China is limited to the state-owned enterprises that are currently in a reform mode. Detang Corporation is a state-owned corporation that operates directly under the State-owned Assets Supervision and Administration Commission (SASAC). The government plays a crucial and important role in minimizing the competition it faces by securing markets for the company, thereby helping it to achieve a monopoly. As a privately owned company, Huawei does not rely on the government’s support to thrive in the market. Ideally, privately owned corporations thrive in competitive market environments by producing better quality products as well as offering competitive prices (Naughton, 2006). However, it is important to note that Huawei is not a semi–private company. One of the examples of a leading state-owned company is the automobile manufacturing giant, Guangzhou Automobile Industry. Its major flagship projects include the manufacture of big vehicles such as trucks and buses.
Response to Ben
As a state-owned company, China National Tobacco Corporation has a large share of China’s domestic cigarette market as well as a significant amount of the world’s cigarette market. The government helps it to maintain its dominance in the local market as well as in marketing the brand abroad (Naughton, 2006). On the other hand, Semi-private companies have a mixture of features of privately owned companies and certain features of state-owned companies. The Lenovo Company is widely influenced by both the market system and government support. China’s aviation industry is largely state regulated, but it is also concerned with making profits. China Southern is an example of a flagship carrier that enjoys a good share of the country’s aviation market.
Naughton, J. (2006).The Chinese economy: Transitions and growth. Oxford: Oxford University, Press.