Experts' panel

On the reform of state-owned enterprises

Hu Angang, dean of the Institute of Contemporary Chinese Studies

SOEs are a key strength of the Chinese economy and remain drivers of progress.

The private sector should compete against the SOEs but not replace them.

David Shambaugh, professor of political science and international affairs at the George Washington University and author of China Goes Global: The Partial Power.

SOEs are mostly companies that thrive in China and are unable to compete with the global multinationals.

As long as SOEs get the majority of government investment Chinese companies will be followers rather than leaders.

Martyn Davies, chief executive of Frontier Advisory, based in Johannesburg

SOEs have played a vital role since reform and opening up but now need to be reformed.

SOE bosses themselves realize the need for reform is urgent.

Miranda Carr, head of China research at strategic investment research company NSBO

SOE reform not straightforward since certain strategic sectors are natural monopolies

Reform will be difficult because some SOE heads are very powerful figures.

Zhu Hai, committee secretary of the Harbin State-owned Assets Supervision Committee

Reform is about improving management efficiency and not getting rid of SOEs.

There is a need to speed up reform but it is part of a continuous process.

Kerry Brown, executive director of the China Studies Centre at the University of Sydney

The slowdown of China's economy makes SOE reform even more important since these businesses need to become more efficient.

Reforms cannot be put off but it is a question of how quickly and how far the government moves.

Zhang Weiying, professor of economics at the Guanghua School of Management at Peking University

Privatization program in the UK led by Margaret Thatcher should be seen as a blueprint.

Many SOEs are already listed and so they can be privatized in stages by the government diluting its stake.

(China Daily European 07/05/2013 page7)