Truck and Barter

According to World Bank country director of China, David Dollar;

“In general, China's transition to a market economy appears to be both more advanced and somewhat less damaging than we thought. Only 8 percent of the firms in this random sample of manufacturing are majority state-owned. Though they control one third of the assets in the sample, this still suggests a larger private sector than previous estimates. The extent of the transition varies dramatically:, from 99 percent private firms in Wenzhou or Jiaxing on the southeast coast to 60 percent in Anshan in the old northeastern rust belt. But in the cities where the private sector flourishes, firms reported far less red tape—from faster times through Customs to fewer days dealing with bureaucracy and less frequent demands for bribes.

While corruption is inherently hard to measure, we get pretty good response rates on the question of whether firms have to pay bribes to get loans from commercial banks, which are still largely state-owned. In southeast cities such as Hangzhou or Xiamen, 1 to 2 percent of firms report paying bribes to gain loans; the figure is above 10 percent in more than 20 cities of the center and west.”

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