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Most consider that the residents of the township or village, which established the TVE, own the firm, but the township-village residents do not have the privileges of ownership: the right to use, transfer or appropriate the assets.
TVEs, for this reason, are sometimes considered to be TVG-run enterprises, although, at times, TVGs act more as if the TVE belonged to them, rather than the township-village residents.
The property rights in these TVEs are not clear because, in most cases, the entrepreneurs received initial authorisation from the TVG to use the land and/or assistance from the TVG to raise capital.
TVEs had become a major component of the Chinese economy, contributing significantly to GDP, employing large numbers of people and contributing to social development.
However, TVEs in the brick, cement, coking and metal-casting sub-sectors were set up primarily to absorb rural labour, to provide essential low cost products, and to contribute to improving livelihoods in a localised area.
TVE are also major contributors to local air and water pollution and health hazards for employees.
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