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The Chinese Economy under Transition by Shujie Yao (Editor), Juzhong Zhuang (Editor) Sarah Cook

By Shujie Yao (Editor), Juzhong Zhuang (Editor) Sarah Cook (Editor)

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Twelve of the ®rst batch of fourteen Three Gorge Dam turbines will be imported, with only a possibility of the second tranche of twelve being supplied from `domestic' sources, much of which may be from the JVs. Even heroic attempts at upward revaluation of the Chinese defence budget suggest that it is no more than one-third of the size of the US defence budget (Bernstein and Munro, 1997). A representative example of this was the decision taken by ICI and Du Pont to swap important parts of their businesses.

1992) `Directing a Global Chemical Operation in the Nineties', Financial Times Conference, 8±9 December. Harbin Power Equipment Company (HPEC) (1995) Annual Report (Harbin). Peter Nolan and Wang Xiaoqiang 33 Hsieh, T. Y. (1996) `Prospering Through Relationships in Asia', McKinsey Quarterly, 4. Huntington, S. P. (1996) The Clash of Civilizations (New York: Simon & Schuster). Jefferson, G. H. and T. G. Rawski (1994) `Enterprise Reform in Chinese Industry', World Bank Research Paper Series, China.

Despite big advances in output and institutional structure, China's big business remains weak. China faces signi®cant barriers to the rapid construction of powerful businesses. Many of these have paradoxically emerged from the reform path chosen, and the devolution of rights to large plants and local authorities, because of the vested interests thereby created. It remains to be seen how the Chinese state responds to this immense planning challenge. At the time of writing, signi®cant thought is being given to the function of the holding company in this epoch.

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