A long march for China's national champions

The Chinese Communist Party is keen to see its SOEs emerge as world-class multinational players, and still determined to grow the sector in the only way it knows how.

Although the Chinese state-owned media outlets have focused on addressing social inequality and environmental concerns during the Third Plenum, the important document is Reform 2.0, which discusses the country’s reform agenda over the next decade. At the heart of Reform 2.0 is Beijing’s view on the dominance of state-owned-enterprises and its relationship with the domestic private sector, which has actually shrunk in absolute size since 2009. While there were acknowledgements of the need to develop the domestic private sector, Beijing also reinforced the importance of the state-owned economy. 

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