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SOEs in OECD and emerging countries

Jul 16,2014

By Jia Tao, SOE development in developed countries research team, Enterprise Research Institute, Department Research Center of the State Council (DRC)

Report No 99, 2014 (Total 4598)

Summary:

SOE reforms have been increasing in China, and the development of SOEs around the world, especially in OECD and major emerging market countries, is a major concern. This study found that SOEs exist across a wide area and play an important role in many countries' economies. Most SOEs are in strategic industries and have a diverse ownership, for example, the listed companies.

Global SOE development indicates that the reforms China has made based on the Third Plenary Session of the 18th Communist Party of China Central Committee's Decision on Major Issues Concerning Comprehensively Deepening Reforms have been in line with international trends, meaning that China needs to make better use of the State-owned sector, with State-owned capital investment serving the country's strategic goals. Investment should also go to key industries that are vital to national security and the economy, and there should be a mixed-ownership economy developed in an active way.