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This book argues that the trade-distorting effects of advantages associated with SOEs are more severe from an economic perspective, and the behavior of SOEs after receiving advantages is of more concern, compared to private-owned enterprises (POEs). The premise is that the existence of SOEs per se is not the essential problem; rather, the underlying problems are (i) the disproportionate granting of advantages to SOEs (compared to POEs) and (ii) the behavior of SOEs once they receive advantages.
The book offers a systematic analysis focusing on the various advantages granted to SOEs and their subsequent behavior. Its detailed analysis reveals the inadequacy of current WTO rules and is complemented by a number of concrete proposals.
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