Study Times, a weekly Chinese Communist Party School newspaper, published an article pointing out problems with State-Owned Enterprises (SOEs), especially those with monopoly positions in China. It argued that many of these SOEs lack core competitiveness in the international market and damage fair competition in China. “With the government’s subsidies, their employees receive large salaries even though the company loses money.” “After recent reforms and reorganizations, the SOEs have become larger and their market dominance stronger, making it impossible for privately owned companies to compete with them.” This is the result of the SOEs misusing the government’s public power. Some large SOEs have financial power and economic influence as significant as that of a provincial government. The article didn’t offer any solutions.
Source: Study Times, December 6, 2010