The term “township and village enterprises” is used here to refer to rural collective economic organizations and enterprises with rural support obligations that are primarily invested by individual farmers and initiated by townships and villages (as defined in the October 1996 “Township and Village Enterprises Law of the People’s Republic of China”). … In China, the “ownership system” is noisy and a bit complicated, but at first township enterprises were limited to the jointly owned form of township (village) or township (township). However, in 1984, it was expanded to cover individual and private enterprises as well. Here, although the ownership is private, a company with seven or fewer employees is called a private company, a company with eight or more employees is called a private company, and both are referred to as a privately owned company. However, in times when ideological restrictions on private ownership were severe, there were many private enterprises (called “red cap enterprises”) that were only formally “collectively owned. In exchange for providing financial support to the village or town, they would rent only the name of the company. Modern Chinese Economy 5-2 Development of Township and Township Enterprises
Township and township enterprises are enterprises established and operated by the administrative units of townships (equivalent to counties) and towns (equivalent to towns) in rural China. These enterprises develop with the resources and support of the local government, and their main purpose is to promote economic development and employment in rural areas. Since the reform and open-door policy, township and village enterprises have contributed significantly to China’s rapid economic growth.
What is the difference from local government in Japan?
The main differences between Japanese local governments and Chinese township enterprises are as follows
- Purpose and nature of establishment:.
- Local governments in Japan: Their main purpose is to provide public services and manage local public administration. As local governments, they are responsible for local administration.
- Chinese township and village enterprises: These enterprises are established primarily for the purpose of economic activity, with the goal of developing the local economy and creating jobs.
- Management and Administration:.
- Japanese local governments: controlled by local councils and municipal mayors and funded by taxes to provide public services.
- Chinese township enterprises: established and controlled by the local government, operated as enterprises and pursuing profits.
- Financial Resources:.
- Local governments in Japan: Local taxes and grants from the national government are the main sources of funding.
- Chinese township enterprises: self-financing, profit, and in some cases support from local government.
Thus, while Japanese local governments are administrative bodies and their purpose is public benefit, Chinese township and village enterprises are a form of enterprise that aims to develop the community through economic activities.
So, Japanese local governments basically use taxes as a source of funding to provide services, while township and village enterprises provide services by making a profit for the company?
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