Let SOEs play bigger role through reform

The authorities vowed to ensure China's State-owned enterprises maintained strong growth this year. But SOEs must overcome certain difficulties to realize this steady growth, says an article in the 21st Century Business Herald (excerpts below).

Excessive production capacity, in some industries, is a serious issue, which increases costs and lowers their investment returns and profit. On top of this, some SOEs are operating under heavy debt.

The State Council is focusing on steady growth, tackling inflation and risk prevention in the economy.

As SOEs increasingly depend on direct investment of the State, rather than their revenue, ensuring SOEs' steady growth without adding to inflation will be a key task for the government.