China deepens SOE reforms, involving more market players
Two special campaigns related to the reform of China's state-owned enterprises (SOEs) have expanded to involve more market players, according to the State-owned Assets Supervision and Administration Commission of the State Council on Monday.
In 2020, one of these campaigns was launched to support and guide state-owned science and technology enterprises to make new breakthroughs in market-oriented reform, and to improve their capacity for independent innovation.
The other campaign was launched in 2018, selecting over 100 subsidiaries of central SOEs and over 100 key local SOEs to explore and innovate in comprehensive reform.
The current reform agenda is unambiguous in its intention to make SOEs “stronger, better, and bigger”. The approach is to follow what the SASAC has dubbed zhuada fangxiao (grasp the big, release the small), which has significantly reduced the number of small SOEs through privatization and asset sales, while at the same time increasing the size of the SOEs that are seen as strategically important for the state economy.
It is important to note that in this process, not all SOEs will be treated equally. To optimize the allocation of resources, a threefold criterion for identifying the SOEs to be reformed is in place. Only those SOEs that are most representative of their industries, have the most potential to benefit, and have the greatest capacity to integrate the reforms successfully will be chosen.
There are 672 state-owned science and technology enterprises involved, as well as 580 subsidiaries of central and local SOEs.
The demonstrative and leading roles of special reform projects will be utilized further, the commission said.
Source:Xinhua ,EY China
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