Beijing Takes Stakes in Private Firms to Keep Them Afloat

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Beijing Takes Stakes in Private Firms to Keep Them Afloat
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Smaller Chinese entrepreneurs are getting squeezed by the trade war and an economic slowdown and state-backed firms are stepping into the breach

The investments mark a reversal after decades in which state-owned enterprises have shrunk in importance, as reflected in measures such as their share of the workforce or

asset ownership. Since China’s public-sector companies are typically less efficient or innovative than their private rivals, the shopping spree could lead to a fresh drag on growth.

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