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"What are the factors driving the growth of township and village enterprises (TVES) in China What barriers to continued growth do they face"
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The presence of TVE’s has contributed a lot in he state-run market. In the community side, the TVE’s contributed greatly to countryside improvement both in cost-effective and societal fields (Yueh, 2010:75). This reduced greatly the country side unemployment pressure the government had to deal with. This paper will endeavor to examine the inclusive factors driving the growth of TVE’s and the barriers in their continuous growth.
First, the TVE’s have been integrated into the world economy. The location of these enterprises sits deep in the rural town of china. In such areas as the coastal l province of Guangdong, Fujian, Zhejiang and Jiangsu were majority are concentrated, the areas have a rich historical background. They possess prominent historical archives and are closely linked to Chinese capitals such as Hong Kong, Taiwan and Southeast Asia (Yueh, 2010:142). The close ties between the TVE’s have created the requirement of international division of labor and this forms an added advantage to rural china. They thus attract overseas Chinese investors. This has in consequence pumped a lot of money and real development and expansion plans have been initiated leading to their uncontrollable growth. The growth and [potential avenues of exploitation is the reason these TVE’s have emerged so strong. These rural setting have again contributed to importance of TVE’s growth. In these locations, the locals have provided well- disciplined and affordable Chinese work force (Tsui et al., 2006:201). This contributes to the successful operation the industries. The output per the TVE’s considerably keeps on going up as a result of dedicated work force. The provisions of tax exemption, currency conversion, and other open door policy as preferential treatment have attracted other international investors. This brings in more developments of these local TVE’s
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