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Semi or Fully Privatized Local Design Institutes

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Semi or fully privatized local design institutes were previously functioned as fully state-owned design institutes. After the economic reforms they gradually merged with private stock-sharers such as construction companies, investors, or real estate developers. The design offices have their licenses transferred from the previous government-owned design institutes, sometimes in a very unclear way, and are either completely or partly privatized. They operate on a big scale and are very market competitive. Exactly because of what we described above – the “Chinese” way of privatizing – it is very difficult to draw the lines between the LDI’s and these former LDI’s. They are all privatized in a different way and under different conditions. This gives rise to a great lack of transparency.