The ongoing debate of state versus private control in China is a slippery one. For decades, China was controlled by economic reform, but now, many large state-owned companies are facing strong competition and are still expected to operate profitably. Many of the largest private companies receive financing from state banks, coordinate their investments with the government and seat their chief executives on government advisory panels. Chinese leaders also no longer publicly emphasize sharp ideological distinctions about ownership. But they never relaxed state control over some sectors considered strategically vital, including finance, defense, energy, telecommunications, railways and ports which are still tightly controlled. China saw rapid economic growth when it allowed private entrepreneurs to prosper in recent decades, but this had an inverse effect on the state sector of the economy. However, China's most recent growth can be found in state run industries due to an increase in government spending during the financial crisis.
The second link is a report published by the World Bank. It shows that the proportion of industrial production companies controlled by the Chinese state edged up last year, checking a slow but seemingly inevitable eclipse. Moreover, investment by state-controlled companies skyrocketed as China surpassed Japan as the world's second largest economy.
http://www.nytimes.com/2010/08/30/world/asia/30china.html?_r=2
http://siteresources.worldbank.org/CHINAEXTN/Resources/3189491268688634523/Quarterly_June_2010.pdf
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