Contradictory goals at core of China's overhaul of state firms, analysts say
Communist Party's plan to reform state-owned firms contradictory, analysts say
The central government will struggle to meet its twin goals of improving corporate governance at state firms while expanding the Communist Party's leadership in the companies, analysts said, after the reform plan was leaked on the internet.
The plan, titled Document No 22 and dated August 24, was jointly issued by the party's Central Committee and the State Council. Its authenticity was confirmed by two officials familiar with SOE matters, according to Reuters.
The regulator for the sector said on its official Weibo on Monday that the authorities had approved the basic guidelines.
The document calls for the restructuring of shareholding and management at SOEs, with reform targets to be met by 2020.
It also said the mainland would set up asset holding companies, and the State-owned Assets Supervision and Administration Commission would shift from managing operations of individual state firms to focus on managing state capital, confirming a report by the South China Morning Post last month.
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The plan also lays down a broad range of policy objectives, including bolstering corporate governance and other monitoring to eliminate corruption and prevent government interference. The plan strengthens the decision-making power of SOE boards in both business operations and hiring.