An even more pressing issue China faces is what to do with its state-owned enterprises that are less efficient. Here, China faces a fundamental problem of personal motivation. They are trying to get officials to be more like private entrepreneurs. That will not work because, unless you are holding on to 20 per cent of the shares, and you live with the fear that the stock market could crash on you, you won’t wake up and do something about it. Your salary goes on. Whether the business goes up or goes down, you just get your salary. But when you have your own wealth involved, your whole
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