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China has become a fast-growing economy with an unbalanced economic structure. Economic policies, especially fiscal and financial policies, contribute to the current growth model by depressing household disposable income and reducing the social services provided by the government. Laws that have been used by the government to subsidise investment and production by distorting factor markets are also to blame. Finally, rebalancing China’s growth pattern has proven to be extremely difficult due to political obstacles, including pressure from interest groups, gridlock caused by factional politics, and ideological discrimination against private entrepreneurs. [ABSTRACT FROM PUBLISHER]

The state sector still plays an important role in China's economy. One of the key development phenomena characterizing the Chinese economy is the rapid ascendency of state-owned enterprises (SOEs) and the resurgence of the state. The strength of China's SOEs is projected in the centrally administrated state-owned enterprises (CSOEs). They are the backbone of the national economy, spearheading national economic development and Beijing's ‘going-out’ strategy. The CSOEs have expanded their reach and increased their power, domestically and globally. In seeking to boost local GDP growth, the eastern provinces in China have joined the western provinces in a fierce contest to attract investment from SOEs. Nevertheless, the rapid ascendency of the SOEs has brought many negative consequences for China's economic, social and political development by causing conflict with the market-oriented development direction of Chinese economic reform and hindering fair competition between state-owned and non-state-owned enterprises. [ABSTRACT FROM PUBLISHER]