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SOE Reform: The Party Must Assume the Responsibility for Managing SOEs

People’s Daily carried an article which Outlook Weekly had originally published. The article stated that, recently, the Central Leading Group for Comprehensively Deepening Reforms passed two opinions on State Owned Enterprise Reform. One is called the “Opinion on Being Persistent in the Party’s Leadership and Development during State Owned Enterprise Reform.” The other is called the “Opinion on Strengthening and Reform of State Owned Enterprise Asset Supervision and the Prevention of State Owned Enterprise Asset Loss.” The article stated that these two Opinions have set the tone from the central administration and provided a timely guarantee to ensure the smooth progress of State Owned Enterprises reform.

According to the article, of the two opinions, the Opinion on “Party Must Assume Responsibility for Managing SOEs” attracted the most attention but it was not the first time that it was brought up. The article listed similar proposals made in the Fourth Conference of the 16th Congress of the CCP in 2004 and the National Party Development within State Owned Enterprise Conference in 2009. Based on the comments from the research experts quoted in the article, defining the Party’s legal position within the company is very sensitive because the current company structure has a board of directors as the core leadership team. Therefore company policy may need to be modified to define the Party’s legal position within the corporation. It is expected that more policies on this subject will be introduced in the near future.

Source: People’s Daily, June 14, 2015