Going forward, these reforms will have a significant impact upon the wider Chinese economy. The changes were proposed as the government looks to reduce the level of losses incurred by the country’s SOEs, while increasing competitiveness and productivity.
With the Chinese economy predicted to overtake the US in the coming years, an overhaul of the country’s SOEs could well play a key role in cementing its economic standing. Chinese economic and corporate development is at a crossroads. By embracing substantial private investment in a cadre of SOEs, the Chinese government could usher in the next period of Chinese economic prosperity.
— Financier Worldwide