Then why do we worry the Chinese owned enterprises?

• China’s Unnecessary and Counterproductive Fiscal Consolidation - Brad Setser

I mussed some numbers in Brad's numbers about Chinese government spending. The Chinese government holds the liability of their failure, but that liability is off the fiscal books.

I see 30% of the economy being SOE. about two point of  profit  margin. Restructuring this sector could easily cost  5% of GDP, but it is off the book.