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End duplicity for Chinese SOEs

chinadaily.com.cn | Updated: 2013-04-15 17:57

Criticism of Chinese State-owned enterprises is a form of protectionism, which goes against free trade and the overall trend of a globalized economy, according to an article in People's Daily.

Excerpts:

After the international financial crisis, "deglobalization" and protectionism became popular in some developed Western countries. Emerging-market countries' and developing nations' enterprises have constantly been made scapegoats, especially Chinese enterprises.

Some senior officials and think tanks prey on China's State-owned enterprises, blaming them, depending on government policies, for unfair competition. They even fabricate rumors about Chinese enterprises for selfish reasons.

However, none of their accusations stand the test of history.

Chinese SOEs have gradually integrated into the international market in the past 30 years, especially after China entered the World Trade Organization more than 10 years ago. These SOEs have undergone profound reform during this time to comply with international conventions. Some are listed on the US stock market, and anyone thinking rationally should not ignore these facts.

A close look at the development history of the West indicates that SOEs also play important roles in developed countries.

Western pundits should not apply double standards to SOEs in different countries, and attacking Chinese SOEs will not benefit developed countries.

SOEs from emerging economies also contribute to the vitality of the international market.

Both SOEs and private companies are important engines to boost global recovery. Critics should follow the overall development trend and change their mindsets to pursue common development with an inclusive attitude.

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