Author: Yingqi Tan
Abstract
The Chinese government is taking on a significant and burgeoning fiscal burden to invest in commanding heights industries to meet citizen’s growing demand. The government is heavily subsidizing citizen’s healthcare costs, transportation costs, electricity bills, and other infrastructure utilization. But this model is both financially unsustainable and systematically deficient. Investments in commanding heights industries coming dominantly from the state are growingly insufficient to keep up with the rising need for capacity and quality.
Citations
Tan, Yingqi. 2020. Reform in Deep Water Zone: How Could China Reform Its State-Dominated Sectors at Commanding Heights. M-RCBG Associate Working Paper No. 153. Cambridge, MA: Mossavar-Rahmani Center for Business & Government, Harvard Kennedy School. http://www.hks.harvard.edu/sites/default/files/centers/mrcbg/files/AWP_153_final.pdf.