Despite the power of its state-owned enterprises, it is taking incremental, but important, steps to liberalize the renminbi and give foreign companies greater access to its vast consumer market.
The intrinsic problem is that China has become too dependent on its own state-owned enterprises to maintain growth and employment at all costs following the events of September 2008.
If the Chinese government wants to better insulate itself from a possible risk that there could be widespread allegations of fraud directed at several state-owned enterprisesand internationally well-recognized Chinese companies, it needs to institute strong corporate governance policies on its more prestigious and successful companies.