New SOE reform plan pushes private investment, retains party control

The Communist Party and State Council have jointly released a blueprint for reform of state-owned enterprises that calls for the addition of private investors and consolidation in unnamed sectors to create larger firms that will be competitive overseas, but which still emphasizes the party’s control over the companies, The Wall Street Journal reported. Meanwhile, Reuters reported the new plan stated SOEs will be divided into commercial and public welfare-related businesses, and identified oil and gas, railways and telecommunications as sectors suitable for limited non-state investment. For more on the direction of Beijing’s SOE reforms, see CER’s in-depth report.