Recent Ownership Reform and Control of Central State-Owned Enterprises in China : Taking One Step at a Time

Competition between State-owned Enterprises ('SOEs') and foreign companies has intensified as China has liberalised market access in order to fulfill its commitments for entry to the WTO. To help SOEs meet the challenge of increasing international competition, the Chinese government has adopted a variety of reform measures to increase the productivity and efficiency of SOEs. Reforming the ownership structure of SOEs and instituting standardised corporate governance are two important measures. This article examines recent ownership reform and control of central SOEs as well as issues to be tackled as part of ongoing reform. Part II provides a short review of the corporatisation of SOEs, Part III examines the powers and functions of the State-owned Assets Supervision and Administration Commission ('SASAC') as a representative body of State ownership, while Part IV reflects on the recent ownership reform and argues for further reform in ownership diversification and ownership regulation