May 21, 2020 05:21 AM

China Proposes Relaxed Control of Minority State-Controlled Enterprises


What’s new: A new opinion document issued by China’s cabinet indicates more relaxed control over the country’s state-controlled enterprises that are going through mixed-ownership restructuring.

“The Opinion on Accelerating the Improvement of the Socialist Market Economy System in the New Era,” released Monday night by the State Council and the Central Committee of the ruling Communist Party, for the first time proposes a more flexible and efficient regulatory system for mixed-ownership enterprises that are no longer majority-controlled by the government.

The proposal means that certain state-controlled enterprises will have more room for restructuring, said Zhou Fangsheng, vice president of think tank China Institute for Reform and Development (CIRD).

The background: China launched the mixed-ownership program in 2013, aiming to bring private-sector investment and management into state-owned companies to improve their efficiency.

The current regulatory system treats absolutely state-controlled enterprises the same as those that are less than 50% state-owned and are actually controlled by the government through agreement. Distinguishing between these two groups of state-controlled enterprises will encourage private capital’s participation in mixed ownership, said Hu Chi, a researcher at the research center of the State-owned Assets Supervision and Administration Commission.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Denise Jia ( and editor Bob Simison (

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