Lady Thatcher transformed Britain's growth and competitiveness partly by a $90bn drive to sell off state industries, many of which looked sickly and loss-making under state ownership. Now China plans a privatization drive over five times as big, as Richard Orange tells us in The Business.

China's market regulator gave the green light for companies listed on the Shanghai and Shenzen stock markets to convert their government stakes, held in non-tradable "legal person" form, into normal publicly tradable shares. At the same time, regulators instructed listed companies to move ahead with plans to buy out government stakes or put them on the market.

They have one advantage over us. In 1970s and early 80s Britain we did not know if there was enough money around to buy the shares we were selling. The Chinese do, with an estimated $1.6 trillion stashed away in private hands. The question now is whether they can persuade investors that the reform of their banking sector and securities laws will proceed on track to lure savers to make the commitment.

But since hitting its low on 11 July, the Shanghai exchange has rebounded 17%, indicating that the shareholding public are beginning to believe the government will reform the market.

At a time when Brussels bureaucrats and regulators are constantly trying to tighten their grip on European economies, it is refreshing to see the Chinese embark on so bold a step and so large a programme. The odds are very high that the Chinese approach will create more wealth for their country, whereas the Brussels approach will only limit growth and curb the wealth-creating process.