The state advances as the private sector retreats

Guó jìn mín tuì (国进民退) is an alleged phenomenon in the Chinese economy, meaning "the state advances as the private sector retreats".

[3] The government has encouraged state-owned enterprises to consolidate, favoured them in regulation, and awarded them contracts and subsidies; this crowds out other competitors, both domestic and foreign, undermining the economy.

[4][5] This contrasts with an earlier phase of economic liberalisation in China, where the private sector was seen as flourishing and generating growth;[3] in the late 1990s, Zhu Rongji weeded out some of the weaker state-owned enterprises.

China’s only computerized reservation system – currently one-third owned by the three state airlines – refused to book flights for private competitors.

[7]In 2008–2012, the government's stimulus package, a response to the global financial crisis, pushed up inflation and increased liquidity; this exacerbated the problem of guo jin min tui.