Calls for far-reaching corporate governance reform
In a new report, the OECD says that China needs to make far-reaching reforms in public and corporate governance if it is to continue on a stable growth path leading to full integration into the world economy.
The report concludes that the country’s governance arrangements suffer from a number of serious fault lines, particularly in relation to China’s public finances and social stability. It notes that public resources that could be used to finance social services are absorbed by efforts to shore up loss-making state-owned companies and prevent default on loans they have received from state-owned banks. Local government structures are burdened by heavy spending obligations without appropriate matching revenues or an effective system of transfers.
See full Article and see OECD Press Release.
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