First Batch of SOEs to Handle Mixed Ownership Reforms in the Northeast Region
China is planning to establish the first batch of pilot State owned enterprises to handle mixed ownership reforms and those enterprises found in the northeast region are expected to be in the highest priority. The move which is part of the blueprint that took shape for a nationwide State owned enterprises reform and is carried out in sectors such as electricity generation, petroleum. Civil aviation, railway, defense and telecommunications.
By launching the projects in the northeast region is said to be critical in pushing forward local State owned enterprises reforms, as these business take on a large share of the northeast economy which is the region’s current economic difficulty is due to inadequate institutional reforms. Northeast areas which include the provinces of Heilongjiang, Liaoning, and Jilin suffers from headwinds from the economic slowdown amid the transformation and the central government is rolling out a set of measures in hopes to boost the ailing growth.
One major solution is to rejuvenate the northeast by beefing up State owned enterprises reforms and get out of single structured economic predicament. The reform must ease control over the market entry and should create a level playing field for both private businesses and the State owned enterprises. Mixed ownership reforms are to be tailored made based on different conditions and should be allowed to play in the market its full role.