tag:blogger.com,1999:blog-2755700415043205247.post5251355103573283548..comments2023-03-28T08:18:07.711-07:00Comments on ChinaBizGov: Privatization of Central SASAC AssetsG. E. Anderson ---http://www.blogger.com/profile/11194863913108812712noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2755700415043205247.post-42464943434085956872009-01-06T15:18:00.000-08:002009-01-06T15:18:00.000-08:00@ChinaLawProf (Don):Very good points! Thanks for ...@ChinaLawProf (Don):<BR/><BR/>Very good points! Thanks for extending the discussion on this.<BR/><BR/>"But what's the evidence that buyers are overpaying for what the state sells off?"<BR/><BR/>As you suggest, it is certainly possible that Shagang is getting a great deal on this transaction, and will do a better job of managing the business. In other words, maybe it's "junk" simply because it has been mismanaged by the present owner. If that's the case, everyone benefits from this transaction. The state gets rid of an asset it can't manage properly, and the private sector finds a way to generate value from it.<BR/><BR/>At least that's the view according to neoclassical economic theory.G. E. Anderson ---https://www.blogger.com/profile/11194863913108812712noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-74301062923972165322009-01-06T12:54:00.000-08:002009-01-06T12:54:00.000-08:00Hi, Greg. I don't see why it follows that the stat...Hi, Greg. I don't see why it follows that the state's selling off junk assets (let's assume for the sake of argument that they are indeed junky) makes the private sector weaker. It all depends what the price is. Even junk has a price that reflects its risk-adjusted earning power. If I can get it for less than that, I'm getting a good deal that makes me economically stronger. Buying junk weakens me only if I overpay for it. But what's the evidence that buyers are overpaying for what the state sells off? In the abstract, I would think it more likely that they would *under*pay, since the actual human beings negotiating on behalf of the state seller don't benefit directly from getting a high price.<BR/><BR/>Best,<BR/>Don ClarkeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-86558923557314096522009-01-06T11:04:00.000-08:002009-01-06T11:04:00.000-08:00@Shek Hei (Toby):Thanks for your thoughtful commen...@Shek Hei (Toby):<BR/><BR/>Thanks for your thoughtful comments!<BR/><BR/>"Any forms of public-recruitment are false."<BR/><BR/>Exactly!<BR/><BR/>Chinese seem to instinctively know this.<BR/><BR/>Even non-Chinese (like me) can examine the evidence and make such a judgment.<BR/><BR/>All of which begs the question: If no one is fooled why all the pretense and fanfare?G. E. Anderson ---https://www.blogger.com/profile/11194863913108812712noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-28075100492573536532009-01-06T08:54:00.000-08:002009-01-06T08:54:00.000-08:00A great start to your Blog, I look forward to read...A great start to your Blog, I look forward to reading future posts. It would be intersting to hear any thoughts/comments you may have on Logistics & freight within China.Andy Martinhttps://www.blogger.com/profile/14073898996481853293noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-672192107009126482009-01-05T22:17:00.000-08:002009-01-05T22:17:00.000-08:00Hi there: AndersonNice to read your blog. You are ...Hi there: Anderson<BR/>Nice to read your blog. You are talking about "Highlighting interesting issues in business-government relations in Greater China." It is worth discussing!<BR/>I am Toby Ho a PhD student. My research is on the work-unit (danwei) system, the stratum of private entrepreneurs - wherein includes private enterprises, private entrepreneurs, and their serving social organizations. One of my research cases is to talk about auto-industry. I can illustrate this aspect of industry, almost all of which is derived from state/collective enterprises (SEs/CEs). People working in this industry most come from(SEs/CEs. Particularly, those high-rank-staff are selected by local party/government. Even these staffs actually are local officials or party members. Any forms of public-recruitment are false. The CCP never allows their authority/power lost.Controlling enterprises is also a money-control and a power-control.<BR/>My undestanding is that there is a real private sector in China. In China's transition, the party has made institutional arrangements for the transfer of this authority. This also fits well with what Deng Xiaoping envisoned Socialism with Chinese Characteristics.<BR/>Cheers<BR/>TobyAnonymoushttps://www.blogger.com/profile/01705570955529568087noreply@blogger.comtag:blogger.com,1999:blog-2755700415043205247.post-54924862792064260982009-01-05T12:34:00.000-08:002009-01-05T12:34:00.000-08:00Keep going -- looks like a promising start.Rich Ku...Keep going -- looks like a promising start.<BR/><BR/>Rich Kuslan, Editor<BR/>Asiabizblog<BR/>www.asiabizblog.comAnonymousnoreply@blogger.com