China Goes Singapore-style With SOE Reforms

SCMP: How China's Singapore-like plan will 'boost growth' by shaking up state-run behemoths
The new system will aim to put greater distance between government and the day-to-day commercial operations of state firms, with the Sasac no longer directly intervening in the running of most SOEs.

The Communist Party first outlined plans for the overhaul at its agenda-setting annual plenum two years ago but progress was stalled by vested interests in the firms and various government departments.

Details of the blueprint are still scant but it is expected to change the way SOEs – which account for a quarter of the mainland’s economy – are supervised and financed to give them more flexibility to make their own operational decisions.

It will also elaborate on the previously released principles to push for mergers of some state firms to enhance competitive power in global market, cut perks for top executives, and give private capital more room to invest in SOE projects and offshoots.
The anti-corruption campaign cleared the decks for these reforms. As the article discusses, the last person to try major SOE reform was Zhu Rongji, and he only lasted one term.

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