Where is the future: China’s SOEs reform

During the last 30 years, China has carried out profound economic reforms and achieved tremendous success. The characteristics of the reform reflect decentralization of the macro economy, liberalization of the market, and privatization of SOEs. China’s economic development has experienced four stages: 1) planned economy; 2) planned economy combined with market adjustment; 3) socialist market economy; and 4) new socialist economy under WTO framework in the 21st century. Since SOEs accounted for the major share of the planned economy before 1978, the SOEs reform has become one of the focuses in the process of the economic reform. Accordingly, SOEs have paralleled approximately the same development stages as the entire economy