History
This strategy focused state resources on large and strategically important enterprises while allowing many smaller SOEs to be restructured, merged, or privatized.
“Grasp the big, release the small”
Rather than functioning as independent commercial entities, SOEs remain financially tied to the state, which retains authority over their capital and oversight.
State ownership
What was the goal of the first stage of reform between 1978 to 1984?
To improve SOE performance, enthusiasm
To increase independency and vitality of SOEs
Besides investment, this is the other basic economic contribution SOEs provide to workers
Employment
Market Integration & Privatization
Stage 3
Created to exercise investor responsibilities on behalf of the state, this institution became a major part of China's new approach to managing central SOEs.
SASAC
Through practices such as “bidirectional entry” and “cross appointment,” this organization maintains an institutional role in the governance of SOEs.
Communist Party of China (CCP)
Which province in China did a pilot in giving autonomy for SOEs?
Sichuan Province
SOEs contribute to this kind of development alongside providing strategically important services
Infrastructure development
Operational Rights Decentralization
Stage 1
This major reform meeting called for the market to play a “decisive” role in resource allocation while continuing to reform state-owned enterprises.
Third Plenum of the 18th Central Committee
Investment in roads, transportation systems, utilities, and other essential facilities demonstrates this contribution of SOEs to the economy.
Infrastructure development
What system did the Chinese government introduce between 1984 to 1992 to boost managerial performance?
Contract Responsibility System
This is what SOEs generate for the state, beyond just providing jobs
Revenue and Profit
SASAC Establishment & Strategic Industry Lists
Stage 4
This reform allowed SOE managers to retain greater responsibility for enterprise performance while the state continued to hold ownership.
Contract Responsibility System (CRS)
“Two-way entry” and “cross-appointment” allow the Party to have a role in major decisions within SOEs. This represents which aspect of Party leadership?
Cadre management
What institution was established in 2003 to supervise SOE groups on behalf of the government?
State-owned Assets Supervision and Administration of the State Council (SASAC)
This is the number of Fortune Global 500 companies Chines SOEs accounted for by 2020
91
Consolidation & Party Integration
Stage 5
At this 2002 political gathering, China called for a clearer framework for exercising state ownership rights over SOEs.
16th Party Congress
Discipline committees within SOEs are responsible for overseeing Party members and addressing issues such as violations of discipline and corruption.
Intra-party supervision
What year was the “Interim Ordinances on State-Operated Enterprises” published?
1983
SOEs can be mobilized for these, especially during economic stress or major investment programs
National Economic Objectives
Ownership vs. Operational Split
Stage 2