From Caijing Magazine:
Under the new program, the state will cover all prison costs while all profits from prison enterprises will go into bank accounts carefully scrutinized by the state.
The reform stems from successful pilot programs adopted by 14 provinces since 2003 and signals an overhaul for China’s problem-ridden prison system.
For decades, prisons have functioned as enterprises that covered rising costs by taking on construction, mining and manufacturing projects. While prisons assumed dual roles – jail inside, company outside – prison chiefs functioned as both law enforcement officers and CEOs.