Privatizing the Chinese Tiehua Industry: A Qualitative Economic Case Study

Abstract

Tiehua (wrought iron painting) is a folk art originating in Anhui Province, China. The tiehua industry has changed drastically over the last 25 years as China's economy has liberalized: Wuhu Tiehua Factory, a heretofore state monopoly, underwent bankruptcy restructuring in 1992, 2002, and 2013, while several new, smaller and more competitive firms have entered the market. The marketization of tiehua has become a meaningful local and regional issue centering on the ownership structure of the tiehua firms, and has proven to be an excellent case study in basic economic theory.