State sector reform will make market fairer, benefit people

China issued a guideline document on Sept 13 for further reform of State-owned enterprises, which is said to be more "market-oriented" because it allows investment of non-State capital in more sectors and discourages government intervention in the running of the SOEs. Comments:

SOEs have long been blamed for unfair competition, because they monopolize key industries, form interest groups with government departments, and lobby local leaders to issue or maintain policies favorable to them. Therefore, the crucial aspect of the reform should be to prevent SOEs from using their political connections to seek economic gains. When their financing costs are the same as non-SOEs' and they have to attract consumers with quality goods and services, market competition will be fairer and more people will benefit from the process.

ifeng.com, Sept 14