China's Privatization: From Gradualism to Shock Therapy?

Abstract

A major breakthrough in China's privatization occurred in May 2005, when a ““share conversion”” pilot reform program was introduced. This article will situate this in the perspective of China's two-decade-long shareholding system reform. It will argue that the ““share conversion”” reform is part of China's long-followed gradualist transition, instead of a switch to shock therapy.