President Xi Jinping has approved a three-year plan to enhance the role of state-owned enterprises (SOEs) in China’s economy as it faces fallout from the coronavirus pandemic and the threat of decoupling from the United States, reported the South China Morning Post.
The SOE action plan for 2020-22 was endorsed by the Central Comprehensively Deepening Reforms Commission, an agency headed by Xi, late last month. Though details have not been published, its approval sends a clear signal that China’s ruling Communist Party has no plans to drop its support for the state sector, despite long-standing complaints from the United States, the European Union and Japan about unfair treatment.
The meeting chaired by Xi on June 30 concluded that “the next three years will be a critical period for China’s SOE reform, and we must enhance the party’s comprehensive leadership over SOEs … and stick to the concept of a socialist market economy,” reported the official Xinhua news agency last week.
“State-owned enterprises are an important material and political foundation for socialism with Chinese characteristics. They are the key pillar and force for the party’s rule and the country’s revitalization,” the Xinhua report said, citing the commission’s statement.