Party Tightens Grip on SOEs

FT: China rows back on state-sector reforms
By giving greater power to the party cells within every SOE, the new direction undermines efforts to establish boards of directors to push SOEs to make decisions based on market conditions, profitability and hard budget constraints.

It flies in the face of policies aired as recently as September to make SOEs more efficient and market-oriented. On Tuesday the International Monetary Fund recommended China create a task force that would help restructure debt-laden SOEs, in line with a government drive this spring to recognise and address industrial overcapacity.

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