Hefei city government has forced out the general managers of two white-goods makers, Rongshida and Hefei Meiling, in a move that shows the state can still flex its muscles in corporate affairs.
Both companies were losing money but in the case of Rongshida, a maker of refrigerators also known as Royalstar, the move was made without the approval of the board of directors.
'Chen Rongzhen has retired as general manager [of Rongshida],' said an official at the Economic and Trade Committee in Hefei, capital of Anhui province.
'He was over the retirement age,' the official said adding that Mr Chen was in his 60s.
While China has moved to separate the state's role in government-owned companies, it has been unable to draw the line clearly.
In the case of Rongshida, the board voted against the appointment of a government-designated successor.