Supervision over State enterprises' management needs strengthening

Xu Jianyi, board chairman of FAW Group Corp, and Liao Yongyuan, chief manager of China National Petroleum Corporation, are under investigation for suspected violations of the law and Party discipline. Comments:

The two cases expose serious deficiencies in the management of State-owned enterprises, which have long been totally independent organizations, with their heads assuming almost absolute control over staff promotion, discipline inspection and other issues. At the same time, there is hardly any supervision over the top managers to prevent them from abusing their power for personal profits. It is advisable that SOEs recruit their senior managers from the outside and put their power under supervision to curb corruption.

Li Jin, a researcher at the China Enterprise Reform and Development Society, March 17