The State Council has finally approved a long-awaited blueprint to overhaul the powerful state-owned enterprises. The guideline will be a key framework document to boost SOE reforms.
The plan aims to push SOEs in competitive sectors to sell shares and enhance the leadership of the Communist Party.
State-owned enterprises will be split into two main categories, commercial companies and public goods providers.
The main aim for commercially oriented will be to go public. They are to diversify ownership by selling shares and giving room to private capital in projects and offshoots. This is intended to make them more competitive in the global market.
SOEs in public service sectors can be solely state-owned. They can also involve the private sector to improve efficiency, cost control and services.
State-owned asset supervisors are to shift from managing individual enterprises to management of state-capital. State-owned capital investment companies will be set up to allocate state funds and manage investment, financing and construction using state assets. Most of the changes are to be implemented by 2020.