Asian Geographic2017

right above Soldiers guard

the China Pavillion before

the opening of the Shanghai

2010 World Expo, an event

that showcased the country

as the next superpower

above Deng Xiaoping’s
portrait is reflected in a
police van’s window in
Shenzhen, designated the
first “Special Economic
Zone”, which Deng
implemented to open up
the economy

“We must oppose protectionism

and facilitate both free trade

and investment”

Xi Jinping, World Economic Forum

Even though political reform is not on president Xi

Jinping’s agenda, the central government is committed

to deepening economic change. Now is the time for

SOEs – one of the last strongholds of true communism

in China. These companies produce far more than

the country – or even the world market – needs.

For example, China’s SOEs produce so much steel

that when prices fall, the rest of the world cowers.

SOEs are primarily a source of jobs and, as such,

profitability is not a priority. “Not only are they a

burden for the country, but they are also unfair for

the world. They are protected in China, where no

competition is allowed in their sectors, but they

[also] enjoy a level playing field elsewhere,” says

Carlo D’Andrea, Vice President of the European

Chamber of Commerce in China.

Still, for millions of workers, SOEs represent

a stable job market with many of the benefits you

would expect in a communist country – free housing,

for instance. SOEs make up only three percent of all

Chinese companies, but they produce up to 40 percent

of all industrial output, employ around 37 million

people, and generate around 20 percent of the GDP.

“We still have many advantages over those in the

private sector, which make more money. That’s why

many wish to work for SOEs. But things are changing.

Before, we knew our jobs were secured for our whole

life,” says Hu Xiong, an employee at one of the biggest

steel companies in China.

Now, Hu is worried, because almost two million

people will be laid off in coal and steel sectors.

“They say we will be relocated, but we know that

many will lose their jobs. Without other skills, we

don’t know what to do,” he says.

1989

The Tiananmen Square

Massacre takes place

after weeks of student-led

demonstrations in Beijing

1976

Mao dies. Soon after, Deng

Xiaoping takes the helm

1979

Deng begins implementing

economic reforms; a wave of

offshore negotiations starts

1966–76

Mao launches the “Cultural

Revolution” to wipe out

contra-revolutionaries.

Millions of people leave the

cities and are re-educated

key events