Employee Ownership Common in China, But Rules Are Uncertain

Broad-based employee ownership appears to be a very common practice in China, especially for divesting government-owned enterprises. But finding useful data or analyses of just how widespread the practice is or how it is structured is very difficult. A recent paper provides some clues. It confirms that employee ownership is very commonly used but that there are no uniform laws of how the plans should be set up. Different municipal and provincial governments have different approaches, while national law often requires round-about approaches to implementing plans. Financing still relies heavily on employee investment. The author suggests a series of reforms to create standard practices with more incentives. The paper has been very awkwardly translated, and there is no author linked to it, but it appears credible. To see the article, go to this link.