It is a common phenomenon that between the state and the ownership exist constant conflicts.When dealing with this issue China is adopting a method that is not the same with the "public opinion of the citizens" in the West,nor is it a mechanism to support competition between the newly rising class of private owners and the state.Economic reform in China intends to co-ordinate conflicts between the state and ownership through changes of government behavior and to find out new ways to redress the balance.Given the condition of China where centralization has been the tradition the local government will function as a leverage to change the direction of the government behavior in China,and therefore bring about sustainable economic growth.
DONG Zheng-qing.
State and Ownership:An Analysis of Government Behavior at a Time of Transformation[J]. Journal of Renmin University of China, 2001(1): 59-64