Part 5/11:
Reforms reminiscent of Premier Jiang Zemin’s 1990s approach are seemingly absent. Today's overcapacity issues mostly stem from privately owned firms which complicate government maneuvering, as local governments often lack control over these enterprises.
Ineffective Bankruptcy Laws and Market Discipline
Despite efforts to instill market discipline through regulations that limit local subsidies and tax breaks, enforcement remains weak. Local officials prioritize GDP growth and employment over restructuring efforts, leading to a reluctance in addressing failing firms.