The Future of SOE Reform May Lie in the Past

Previous reforms of state-owned enterprises (SOEs) helped them reduce their losses and increase profits. Some central government-controlled SOEs are now listed among top 500 companies in the world because of their huge profits.

Now, some people are arguing that these firms no longer need to reform, but instead should just get bigger and stronger. However, SOEs need change as urgently as they did in the 1990s. They are profitable, but face many problems. Any failures will not only hurt the economy, but all of society.