China Boosts State Firms as Entrepreneurs Struggle

July 7, 2012  by in UnCategorized   

By Aggregated Content in Business Strategy on July 8, 2012 from http://www.cbsnews.com/8301-505245_162-57468243/china-boosts-state-firms-as-entrepreneurs-struggle/ Reformers say China needs more entrepreneurs like Liu Peijian. His chain of furniture stores employs 60 people. But Beijing's response to the deepest economic slump since the 2008 crisis is to pump money into state industry, leaving businesspeople like Liu who create jobs to fend for themselves. Across town from Liu's office is a project that exemplifies China's mini-stimulus: An $11 billion steel mill being built by a government company and financed by state banks. It will employ 5,000 people or one job for each $2.2 million of investment. Spending like that of Baosteel Group, owner

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