
Veiled Intentions & Long-Term Mindset: Beijing Rejects Market-Oriented SOE Reform
A recent string of high-profile SOE defaults have revived hopes for market reform of China’s inefficient state sector. However, despite appearances to the contrary, Beijing continues to push for greater state control over the sector and an augmented role for SOEs in strategic industries and initiatives. As a result, the performance of China’s SOEs has stagnated and the state sector remains a burden to near-term economic growth.