Online voices are contending that it is hard currently for private enterprises to raise funds and some State-owned enterprises (SOEs) could end up buying private firms. These concerns were refuted by the State Council Information Office on October 15, which stated that SOEs and private enterprises are important to the country’s economy, and what happens is a function of normal market rules, meaning that relations between SOEs and private enterprises are not a zero-sum game.
The Beijing Youth Daily said in an editorial that it is unreasonable to make judgments based on the tough time private enterprises are facing.
SOEs and private enterprises are complementary, and any project basically is a cooperation between two kinds of enterprises. For instance, the manufacturing of high-speed railways or airplanes, previously monopolized by SOEs, also sees the contribution of private enterprises. Also, online shopping or electronic payments rapidly developed when private enterprises such as Alibaba started to grow, which is not possible without services of State-owned telecommunication giants.
SOEs should further promote mixed ownership reform, and an optimized business and legal environment should be provided for private enterprises in order to push them to make first-class products. The growth of both SOEs and private enterprises can help China shift into high quality growth based on new dynamics.
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