Chapter 11. State-Owned Enterprise Reform
Author:
Mr. Waikei R Lam
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Mr. Alfred Schipke
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Abstract

Tackling the rising vulnerabilities and low efficiency of state-owned enterprises (SOEs) is crucial to China’s transitioning toward a more sustainable growth path. The need now for bold SOE reforms is similar to the reforms at the end of the 1990s, which, after steadfast implementation, helped unleash the country’s growth potential and secure rapid development in the early 2000s. Successful SOE reform can improve resource allocation, create space for the private sector to flourish, and address major vulnerabilities.

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