1
China Resource
Corporation
What were the most significant challenges prior to implementation?
Until the late 1970s, CRC enjoyed the benefits of being the de facto trading monopoly of
China. As with most state owned enterprises that are shielded from competition, CRC grew in
volume without a need to focus on efficiency. With the passing of Mao Zedong and transition of
China’s economy away from central planning toward a more market-driven economy, CRC was
forced to deal with real competition.
As part of this transition China created special economic zones (SEZs) to attract foreign
investment and create partnerships between Chinese and foreign companies. China then
reformed its foreign trade policy diminishing CRC’s role as an intermediary. These changes
forced CRC to change the way it traditionally did business by focusing on its own trading
activity instead of acting as the middleman. By the 1990s, CRC had changed its growth strategy
away from trading toward the acquisition of listed assets. The result was quick and powerful
