The Many Layers of the Chinese Market, 24th Dec., 2010.

Gregory C. Chow has an article in the American Economic Review, titled "Challenges of China's Economic System for Economic Theory."

China is an interesting experimental station for both public and private enterprises, as state-owned enterprises coexist with collectively owned enterprises (many by township and villages) and private enterprises (owned individually, by foreign corporations, or jointly with foreign corporations). Some state-owned enterprises, especially those having joint ventures with foreign corporations, appear to be efficient, as they are financially independent and are making large profits. Many collectively owned township and village enterprises are successful in increasing output and making profits. The successful experience of the township and village enterprises in China is sufficient to challenge the dogma that only private enterprises in a capitalist economy can be efficient. [ . . . ]

Two kinds of ""assets" need to be distinguished. Land as an asset is publicly owned. The enterprise managed by a farm household using the land is privately owned. This private enterprise leases a piece of publicly owned land to produce and make profits, as in a capitalist society, but the government or village authority owns the piece of land under a Chinese socialist system. Publicly owned assets consist mainly of land, state enterprises, and township and village enterprises. The government can lease a state enterprise to a manager who operates it for profit.