What means have been retained for government agencies and officials to Essay

What means score been retained for brass agencies and officials to go on the Chinese economy - Essay ExampleThe SOEs constitutes of capital intensive industries and therefore absorbs a long share of the states financial resources through financing. Additionally, in the Chinese stock market, the shares offer monetary value lacks a reflection of real relation amid the shares supply and demand. The government restrictions on decision making rights, prices, image rights and trade have made it more challenging for enterprises and firms to grow (OECD 2010, 1-40).According to Tubilewicz (2006, 120-134), the government is the prime proposer of the economy and the regulatory government should therefore ensure that the societal welfare is maintained and business persons have a better working environment. However, in Chinas case, this has not yet been applicable. This clearly states that the government agencies and officials who have a study stake in Chinese economy should play a major ro le in boosting its performance and mitigating major economic challenges. In order to do this, it important to take apart ways through which the government officials can play their roles in the economy.By taking a note at the negative impacts that have resulted from the Chinese government paying extra attention to the SOEs and bossy other business enterprises, one gets clear picture of the negative economical impact caused by Chinese government excessive control on the economy. Around 1979, Chinas government introduce their sustain profit retention mechanisms, mandatory planning reduction, production responsibility systems and profit tax reform thereby taking autonomous SOEs managerial control in order to increase the SOEs efficiency. However, the reforms which were inducted to a lower place the traditional state socialism allowed no room for ownership structure changes and hence, the state bore the SOEs losses. The contracted managerial responsibility system made most managers maximize