Reform SOEs to serve public interest

The Standing Committee of the National People's Congress examined the government's final revenue and expenditure accounts for 2012 but questions have been raised especially concerning profits at State-owned enterprises, said an article in Southern Metropolis Daily (excerpts below).

SOEs in developed countries do not engage in lucrative businesses and markets as they are subsidized by the government and provide public services and products.

In contrast, Chinese SOEs, favored with preferential policies, occupy profitable monopoly markets. They squeeze living space for private companies.

The government pledged to reform SOEs some 20 years ago but they have become more powerful.

The government should divide them into two categories, non-profit and profitable.

Those seeking profits should engage with the market on an even playing field.