Explaining the Financial Performance of China's Industrial Enterprises: Beyond the Competition-Ownership Controversy

Scholarly explanations of the worsening financial performance of Chinese industry over the reform era, particularly the loss-making phenomenon, have coalesced around two rival stories: the “inefficient institutions causing poor financial performance” story and the “increased competition inducing profitability decline” story. This article critically reviews the arguments and empirical substantiation of the two stories, and gives an alternative explanation that takes demand conditions and industrial configurations into the analysis. On this basis, it is argued that the worsening financial performance is a macro as well as micro problem that points to the fundamental contradictions in contemporary Chinese political economy. Some policy implications from this analysis are raised in the concluding section

Firm Size, Technical Efficiency and Productivity Growth in Chinese Industry

Since the mid-1990s, China’s state leadership has adopted a policy of nurturing the competitiveness of large state-owned industrial enterprises. The implications of this policy have been a matter of debate in the literature. This paper seeks to provide some useful input into the debate. With a view of investigating into the potential of long-term development of large enterprises, we estimate the “sequential production technology” in computing the Malmquist productivity index for various size-groups of enterprises in Chinese industry. Our findings indicate that large enterprises did register the fastest productivity growth and improvement in technical efficiency in the 1994-97 period. It thus appears that large-scale, mainly state-owned Chinese enterprises have exhibited the potential of making noticeable improvements and the relevant state policy does have its justification

Currency attack/defense with two-sided private information

A currency attack fails on its own when the speculator suffers from her financial problem. This paper extends the existing models and argues that the monetary authority?s willingness to peg and the speculator?s cost of attack are private information. Our model thus accounts for the duration of currency attack/defense, and more importantly, allows for failed attack. We employ an asymmetric war of attrition and gauge the time when the speculator stops attacking, or when the monetary authority de-pegs. Comparative static results throw light on the interest rate policy amidst the Exchange Rate Mechanism Crisis and the Asian Currency CrisisAsymmetric war of attrition; Credibility of policymakers; Failed speculative attack; Persistent effect; Two-sided private information

The economic link-up of Hong Kong and Guangdong : structural and development problems

The phenomenal link-up between the Hong Kong and Guangdong economies has been proceeding at a remarkable speed since the launching of the Chinese economic reform in late 1978. The process has largely been market-driven and seems to suit the short-run comparative advantage on both sides. In essence, however, it has been a result of a reallocation of resources across the border, made possible by China\u27s open policy. It has not yet led to a benign form of developmental upgrading which embodies the strengthening of the long-term foundation for productivity and competitiveness enhancement. Indeed, the tremendous windfall profits obtained so far could be regarded as a disincentive for R & D investments as well as beneficial decisions that may incur painful side effects in the short run. Problems which are structural and developmental in nature, including bias and duplication in production patterns, inflationary pressure, widening income inequality, and the loss of competitiveness, have emerged in both Hong Kong and Guangdong. These problems could be traced to the lack of countervailing forces that promote far-sighted strategies, vis-a-vis short-termism driven by market supplies and demands and yearly profit maximization. In this paper, we argue that while better coordination should be pursued to ensure mutually beneficial developments and to avoid duplication in efforts and undesirable convergence in industrial structures, the future trajectories of the two economies will not and cannot be identical. Hong Kong and Guangdong are different in size and endowments, and face dissimilar political and economic frameworks. Independent policies and measures to nurture specific advantages and to solve internal problems have to be made. Indeed, a certain distancing in economic relations between the two economies will be healthy

Risk of thyroid dysfunction associated with mRNA and inactivated COVID-19 vaccines: a population-based study of 2.3 million vaccine recipients

Background: In view of accumulating case reports of thyroid dysfunction following COVID-19 vaccination, we evaluated the risks of incident thyroid dysfunction following inactivated (CoronaVac) and mRNA (BNT162b2) COVID-19 vaccines using a population-based dataset. / Methods: We identified people who received COVID-19 vaccination between 23 February and 30 September 2021 from a population-based electronic health database in Hong Kong, linked to vaccination records. Thyroid dysfunction encompassed anti-thyroid drug (ATD)/levothyroxine (LT4) initiation, biochemical picture of hyperthyroidism/hypothyroidism, incident Graves’ disease (GD), and thyroiditis. A self-controlled case series design was used to estimate the incidence rate ratio (IRR) of thyroid dysfunction in a 56-day post-vaccination period compared to the baseline period (non-exposure period) using conditional Poisson regression. / Results: A total of 2,288,239 people received at least one dose of COVID-19 vaccination (57.8% BNT162b2 recipients and 42.2% CoronaVac recipients). 94.3% of BNT162b2 recipients and 92.2% of CoronaVac recipients received the second dose. Following the first dose of COVID-19 vaccination, there was no increase in the risks of ATD initiation (BNT162b2: IRR 0.864, 95% CI 0.670–1.114; CoronaVac: IRR 0.707, 95% CI 0.549–0.912), LT4 initiation (BNT162b2: IRR 0.911, 95% CI 0.716–1.159; CoronaVac: IRR 0.778, 95% CI 0.618–0.981), biochemical picture of hyperthyroidism (BNT162b2: IRR 0.872, 95% CI 0.744–1.023; CoronaVac: IRR 0.830, 95% CI 0.713–0.967) or hypothyroidism (BNT162b2: IRR 1.002, 95% CI 0.838–1.199; CoronaVac: IRR 0.963, 95% CI 0.807–1.149), GD, and thyroiditis. Similarly, following the second dose of COVID-19 vaccination, there was no increase in the risks of ATD initiation (BNT162b2: IRR 0.972, 95% CI 0.770–1.227; CoronaVac: IRR 0.879, 95%CI 0.693–1.116), LT4 initiation (BNT162b2: IRR 1.019, 95% CI 0.833–1.246; CoronaVac: IRR 0.768, 95% CI 0.613–0.962), hyperthyroidism (BNT162b2: IRR 1.039, 95% CI 0.899–1.201; CoronaVac: IRR 0.911, 95% CI 0.786–1.055), hypothyroidism (BNT162b2: IRR 0.935, 95% CI 0.794–1.102; CoronaVac: IRR 0.945, 95% CI 0.799–1.119), GD, and thyroiditis. Age- and sex-specific subgroup and sensitivity analyses showed consistent neutral associations between thyroid dysfunction and both types of COVID-19 vaccines. / Conclusions: Our population-based study showed no evidence of vaccine-related increase in incident hyperthyroidism or hypothyroidism with both BNT162b2 and CoronaVac

A review of the pharmacological effects of Arctium lappa (burdock)

Abstract Arctium lappa, commonly known as burdock, is being promoted/recommended as a healthy and nutritive food in Chinese societies. Burdock has been used therapeutically in Europe, North America and Asia for hundreds of years. The roots, seeds and leaves of burdock have been investigated in view of its popular uses in traditional Chinese medicine (TCM). In this review, the reported therapeutic effects of the active compounds present in the different botanical parts of burdock are summarized. In the root, the active ingredients have been found to "detoxify" blood in terms of TCM and promote blood circulation to the skin surface, improving the skin quality/texture and curing skin diseases like eczema. Antioxidants and antidiabetic compounds have also been found in the root. In the seeds, some active compounds possess anti-inflammatory effects and potent inhibitory effects on the growth of tumors such as pancreatic carcinoma. In the leaf extract, the active compounds isolated can inhibit the growth of micro-organisms in the oral cavity. The medicinal uses of burdock in treating chronic diseases such as cancers, diabetes and AIDS have been reported. However, it is also essential to be aware of the side effects of burdock including contact dermatitis and other allergic/inflammatory responses that might be evoked by burdock

Robust estimation of bacterial cell count from optical density

Optical density (OD) is widely used to estimate the density of cells in liquid culture, but cannot be compared between instruments without a standardized calibration protocol and is challenging to relate to actual cell count. We address this with an interlaboratory study comparing three simple, low-cost, and highly accessible OD calibration protocols across 244 laboratories, applied to eight strains of constitutive GFP-expressing E. coli. Based on our results, we recommend calibrating OD to estimated cell count using serial dilution of silica microspheres, which produces highly precise calibration (95.5% of residuals <1.2-fold), is easily assessed for quality control, also assesses instrument effective linear range, and can be combined with fluorescence calibration to obtain units of Molecules of Equivalent Fluorescein (MEFL) per cell, allowing direct comparison and data fusion with flow cytometry measurements: in our study, fluorescence per cell measurements showed only a 1.07-fold mean difference between plate reader and flow cytometry data

Post-capitalist property

When writing about property and property rights in his imagined post-capitalist society of the future, Marx seemed to envisage ‘individual property’ co-existing with ‘socialized property’ in the means of production. As the social and political consequences of faltering growth and increasing inequality, debt and insecurity gradually manifest themselves, and with automation and artificial intelligence lurking in the wings, the future of capitalism, at least in its current form, looks increasingly uncertain. With this, the question of what property and property rights might look like in the future, in a potentially post-capitalist society, is becoming ever more pertinent. Is the choice simply between private property and markets, and public (state-owned) property and planning? Or can individual and social property in the (same) means of production co-exist, as Marx suggested? This paper explores ways in which they might, through an examination of the Chinese household responsibility system (HRS) and the ‘fuzzy’ and seemingly confusing regime of land ownership that it instituted. It examines the HRS against the backdrop of Marx’s ideas about property and subsequent (post-Marx) theorizing about the legal nature of property in which property has come widely to be conceptualized not as a single, unitary ‘ownership’ right to a thing (or, indeed, as the thing itself) but as a ‘bundle of rights’. The bundle-of-rights idea of property, it suggests, enables us to see not only that ‘individual’ and ‘socialized’ property’ in the (same) means of production might indeed co-exist, but that the range of institutional possibility is far greater than that between capitalism and socialism/communism as traditionally conceived

Electricity Market Reforms for Energy Transition: Lessons from China

In response to the rising importance of the climate agenda, many countries have restructured their electricity markets to facilitate the utilization of renewable energy. China is an interesting case because it has expanded its utilization of wind and solar energy with unmatched speed. This review starts with an analysis of the 2002 reforms that uncoupled electricity production from transmission. The investigation covers the period leading up to the 2022 proposal, which aimed to build a nationally integrated electricity market. The analysis suggests that a careful alignment of incentives for key market players to produce and consume renewable energy is vital during the process of energy transition. The introduction of feed-in tariffs in 2009 for wind energy, which were subsequently extended to solar energy, stimulated a high growth in installed capacity. However, a high electricity curtailment rate resulted. Since 2018, the Chinese government has resorted to curtailment caps and renewable portfolio standards to increase the utilization of renewable electricity. After the announcement of the “dual carbon goals” in 2020, the Chinese government launched a series of reforms that aimed to nurture growth in the green electricity market and the formation of a nationally integrated electricity market. The removal of interregional trade barriers is a key element of China’s current electricity market reforms and will be crucial to determining whether China can achieve its climate goals