Deyang, a city of 3.6 million people in Sichuan province, is home to one of China’s most infamous SOEs, China National Erzhong, a giant machinery manufacturer that became a poster child for the inefficiencies of bloated heavy industry sectors. Photo: Weibo

In China’s industrial hinterlands, state subsidies run deep and appetite for reform is low despite US demands

  • In protracted US-China trade war talks, Washington has demanded that Beijing stop subsidising state-owned enterprises (SOEs)
  • Deyang and Liuzhou, two cities reliant on SOE employment, highlight why fears of social unrest make the demands untenable for China’s authorities
Topic |   US-China trade war

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Deyang, a city of 3.6 million people in Sichuan province, is home to one of China’s most infamous SOEs, China National Erzhong, a giant machinery manufacturer that became a poster child for the inefficiencies of bloated heavy industry sectors. Photo: Weibo
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