Deepened SOE reforms can revitalize Chinese economy

The long-awaited blueprint for reforming and revitalizing the State sector has been released and it promises to give a huge boost to China's battle against the downward pressure on its economy. More importantly, the latest drive to deepen reform of State-owned enterprises may, in the long run, prove wrong those who believe that China's growth miracle has run its course.

On Sunday, guidelines were jointly issued by the Communist Party of China's Central Committee and the State Council to reorganize and restructure some SOEs so that they can be a long-term pillar of the Chinese economy.

By cultivating a number of key SOEs with considerable innovation capability and international competitiveness, Chinese policymakers aim to retool and revive the world's second-largest economy by giving entrepreneurs and market forces a bigger role.