Chinese Investment Has Tilted Back Towards State-Owned Firms

January 22, 2019

Chinese Investment Has Tilted Back Towards State-Owned Firms
PIIE/William Melancon

One important sign of China's progress in economic reform is the relative share of private and state investment out of total investment. Between 2006 and 2011, the share of private investment rose quickly as new sectors won access to bank loans and the domestic equity market. But starting in 2012, the pace of private investment growth slowed, and by 2015, the state began gaining a foothold again.

This PIIE Chart was adapted from Nicholas R. Lardy's book, The State Strikes Back: The End of Economic Reform in China?

Additional credits: Melina Kolb, Digital Communications Manager