"China has ordered state firms to smash the decades-old system of providing cradle-to-grave welfare support, known as the country’s 'iron rice bowl,'" reports David Stanway. "But the order, part of a plan to reduce financial pressure on bloated and heavily indebted state-owned enterprises (SOEs), is likely to be easier said than done as cities navigate the social and financial wrenches the changes will cause."
The merger of China’s two largest steelmakers shows Beijing’s ongoing reliance on an industrial consolidation strategy that hasn’t worked in the past
The union of Baosteel and Wuhan Iron and Steel may not meet the goal of improving efficiency. Other objectives, such as maintaining employment and staving off unrest, may take priority as they have in other industries.
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