could be converted to public corporations. When these companies become shareholder-owned companies, it opens the door to foreign competition. Government holdings can be at the level of minority shareholder. Strengthening financial markets. Set up the equivalent of our SEC and allow annual capital-generating stock listings in Shanghai and Shenzhen. (China already has a start on regulating securities exchanges (Reuter’s).) Selling state assets. Currently, there are 305.000 state-owned businesses. The government would retain 1,000; the remaining would be sold. Those that cannot be sold will be allowed to go bankrupt. Building social services. Literally millions of Chinese citizens stand to lose their jobs through the sale and conversion of state-owned businesses. This action is intended to both replace some of those state-owned enterprises and provide assistance to those affected in the form of training, housing, and pensions design. Cutting trade tariffs. Though China is not a member of ASEAN, the country does aspire to join the World Trade Organizations (WTO) by the year 2000. Tariffs must be reduced to 15 percent by that time in order for China to be eligible for WTO membership (Business Week). Even while concentrating on internal adjustments, the government apparently intends to work toward that end. Jiang’s objective is to build a "complete market system" which will give China a chance to grow at an average of 6.5 percent annually for about 25 years and come forth as a $5 trillion modern industrial superpower (Clifford et al.). If the President is able to succeed with his plan of action, the impact will be tremendous for the global economy of the 21st century. Hong Kong, the center of the Chinese capitalism, could have the opportunity to be side-by-side with London, Tokyo, and New York as financial centers. As long as Chinese individuals move in on global bonds and stock markets to help finance everything, like superhi...
