China to Diversify SOE Ownership

From Xinhua:


The Chinese government’s vow to boost diverse ownership means state-owned enterprise (SOE) reform, experts have told Xinhua.  Ding Yifan, deputy director of the Institute of World Development under the State Council’s Development Research Center, said a communique, issued after a key meeting of the Communist Party of China (CPC) Central Committee, set diverse ownership as the future development direction.

The move is a result of complaints about SOEs’ low efficiency and them receiving too many favors from government, said Ding in a program on Chinese reforms aired on Sunday on China Xinhua News Agency Network Co. Ltd. (CNC).

The external situation is another reason. For example, the United Stated is building a Trans-Pacific Partnership (TPP), which has a rule that forbids SOEs in its free trade zone, he said.

As a result, Chinese SOEs need to change, Ding said.