SOEs No Longer Have Edge in Market Competition

Competitive neutrality seeks to create fair market competition at home while improving the global core competitiveness of Chinese enterprises, Xiang Anbo, a researcher at the Development Research Center of the State Council, told the Economic Daily.　　
 
The term refers to the government treating businesses of all sizes and ownerships equally while remaining neutral on matters of tax, debt and regulations. 　
 
It does not require State-owned enterprises (SOEs) to become proactive in making room for non-SOEs. Instead, SOEs must compete directly with private companies without their State-owned status enabling them to seek preferential treatment or benefits.
 
As China transitions its economic policy from industry-oriented to competition -based system, SOEs will need to make some crucial adjustments, Xiang said.　
 
Competitive neutrality is essential for international economic and trade governance as it places higher requirements on SOEs to take part in commercial activities. As SOEs increase their business overseas, they face new challenges from international competition rules. To mitigate external shocks, SOEs should adjust and strive for a favorable international environment and development space abroad.　BIUCX↑↓✎