How will the reforms under consideration likely affect the way things are done? The groundwork was laid at a key economic policy meeting last month. The new reforms are expected to take place in three major areas.
Since the 1980s, the role of China’s state-owned enterprises has been shifted from simply being part of the government machinery to commercial entities. At the CPC’s major policy meeting in November--the central committee’s third plenum--the role of SOEs was further clarified. This will shape future reforms.
"State-owned enterprises are supposed to preserve and increase the value of state assets. That’s their economic responsibility. They should also shoulder social and political responsibilities since it is the people of China that their property rights belong to." said Zhang Chunxiao, Expert, SOE Supervision and Admin. Commission.
China will tighten control over key areas known as "lifeline industries. But in other sectors, non-state investment in SOE’s will be encouraged.
"The SOEs are going to diversify their investment resources. And I think some SOEs may go with relative state-holding...So it is an excellent opportunity for private and mixed-ownership enterprises to access more market resources. And for SOEs, this would help them modernize their management and promote management transparency." said Zhang Wenkui, Dev’t Research Center, State Council.
And with the SOA and SOEs embracing reforms, the role of their supervisor, the SOE Supervision and Administration Commission, is also subject to changes. In the party’s plenary session last month, the leadership stressed that the MARKET should play a decisive role in resource allocation.
"In the past, the Commission was in charge of the management of assets, human resources and businesses. But in the future.. the management role of state-owned assets will be gradually taken over by those who really run the business, the SOEs." said Zhang Chunxiao, Expert, SOE Supervision and Admin. Commission.
Experts say this will allow the supervisory body to concentrate on supervising, which in turn would ensure the preservation and growth of state assets.
Source: CCTV
