Li Rongrong famously criticized SOEs for diversifying into non-core areas such as real estate and hospitality, arguing that this diluted capital efficiency. The model enforced a strict return to "main business" (zhu ye), forcing SOEs to divest from peripheral sectors. This cleared the balance sheets of major SOEs, allowing them to focus capital on heavy industry and infrastructure, aligning with the central government’s macroeconomic goals.
— Possibly a misspelling? For example, are you thinking of the Li Rong model (a statistical model), Li Rongqian , or another figure? li rongrong model
The model rests on two pillars:
In Chinese macroeconomics, the "Li Rongrong Model" typically refers to the analytical framework associated with Li Rongrong , a prominent former chairperson of the State-owned Assets Supervision and Administration Commission (SASAC). The model outlines the specific trajectory, methodology, and impact of State-Owned Enterprise (SOE) reform during the early 2000s, specifically focusing on the strategic restructuring of the state economy. This paper addresses that specific economic model. Li Rongrong famously criticized SOEs for diversifying into
