| dc.description.abstract | This paper attempts to rethink the whole Industrial Policy made by Chinese Governments by discussing the operation and process of privatization in state-run Textile enterprises during 1950-1972.
After WWⅡ, plenty of Japanese assets, called enemy property at that time, was taken into custody by Chinese Governments. The most important industry in Japanese assets was textile companies. In order to revived and controlled the economy, already broken by Sino-Japan war, Chinese Governments employed the enemy property, which should be give back to Chinese civil because most parts plundered from Chinese, to construct the system of state-run enterprises, and the cotton estate justly played the main role .
However, the system collapsed for strongly opposite arguments issued by civil as well as a out of office control inflation happened since 1948. Although, Chinese Governments got a bitter experience of economic failure before 1949, they still continued above economic policies, which was to develop the system of state-run enterprises with all their strength, after withdrawing from China mainland and move the all government organizations to Taiwan when they lose civil war. Why Chinese Governments didn’t change their economic policies after 1949? This was because Chinese Government perceived that other countries all recovered their local economy by running the textile industry. Therefore, technocrats determined to expand the textile industry as well as establish several state-run Textile enterprises, which was Taiwan Textile Industrial Co., Yung Shing Industrial co., Taipei Cotton Textile co., for saving the foreign exchange and protecting the native market in Formosa.
Chinese Governments issued a series of protective policies which had been made and executed in China mainland during Taiwan import substitution era. Nevertheless, there are different geographical conditions between Taiwan and China mainland, such as Taiwan produced cottons anymore. Afterward, it caused a seriously debate that was Taiwan a right location to develop textile industry. I find that the debate was a war between planned economy and liberal economic in essence, parts of scholars and entrepreneurs opposed protective policies among textile industry because of against planned economy but expecting liberal economic on market operation.
Despite Chinese Governments endeavored to assist the management of state-run Textile enterprises in 1950s, the idea of privatization also emerged at technocrats mind, they proposed to sell Taiwan Textile Industrial co in the early 1950s, but gave up the proposal as a result. Up to 1960s, all state-run Textile enterprises involved in capital-deduction, they gradually lost the competency contrasting with private Textile enterprises. Although, The administration knows the problems of management of state-run Textile enterprise, but they wouldn’t like to approved quality of manufacture by investing capital. In the ended, the state-run Textile enterprise couldn’t exist anymore, then the administration needed to think about the dilemma which was the combination of two state-run Textile enterprise or sold them.
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