He points to a campaign this year against management buy-outs of such enterprises, a once common form of privatisation in China.

ECONOMIST: China

So far, there have been fewer sales to foreigners than to local wheeler-dealers who arrange management buy-outs for their friends at big discounts.

ECONOMIST: Sprucing up Bulgaria

In response, the government banned management buy-outs of large state enterprises.

ECONOMIST: Governing China

Mr Cao, whose calls for political reform have earned him constant surveillance by the police (he skilfully evaded them to meet your correspondent), says the drawbacks of management buy-outs have been exaggerated by conservatives.

ECONOMIST: China