Taking SOEs Back to Their Roots

A recent corruption scandal that brought down Jiang Jiemin, head of the regulator of state-owned assets, is but another reminder of the alarming corruption problem at state-owned enterprises (SOEs).

If left alone, the trend will eventually lead to a breakdown. The central government's current iron-fisted approach is essential to preventing the problem from spreading. However, it is not a solution to the underlying problem.