China's state-owned enterprises enjoy unfair advantages

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The Economist

Ten years after China joined the World Trade Organization, state-owned enterprises are stronger than ever. A recently released Congressional report railed against the unfair advantages enjoyed by state-owned firms. In her new book, China's Regulatory State, Temple political scientist Roselyn Hsueh documents how, in sectors ranging from telecommunications to textiles, the government enforces rules selectively to keep private-sector rivals in their place. State firms can dominate local markets without running afoul of antitrust authorities; but when foreigners try to acquire local firms, they can be blocked.