China.com recently reported that Li Rongrong, former director of the State-owned Assets Supervision and Administration Commission of the State Council (SAC), spoke at the World Economic Forum on the issues that Chinese state-owned companies face. Li suggested that the key cause of the Chinese state-owned companies’ failures is that there are too many government interventions. He also expressed the belief that the biggest crisis these companies suffer is a trust crisis, which is reflected in the areas of poor quality control, untruthful advertising, and an unwillingness to serve the customers. Li called for providing full freedom to the state-owned companies to compete in the global market and to learn the lessons they need to learn.
Source: China.com, September 11, 2013