REUTERS
Chinese President Xi Jinping began a review of the situation in China's bloated state-owned companies before his visit to the United States to show that Beijing is set to change, despite the slowdown in the national economy, according to The Wall Street Journal.
However, the plan submitted on Sunday indicates only modest changes in the Chinese version of state capitalism, according to the report.
The plan aims at increasing the profitability of state-owned companies, enabling them to attract private investors. In addition, its goal is to strengthen their competitiveness abroad by expanding their business, even though it threatens the creation of additional inefficiency factors and obstacles to entrepreneurship.
Particularly important is that the plan does not indicate whether state enterprises demonstrating poor performance will be able to carry out the procedure of bankruptcy. The move economists believe is important for the success of the new plan.
The plan reflects Mr. Xi's belief, according to officials familiar with his thinking, that the state sector, rather than taking a back seat, should be improved to continue to play a dominant role in the Chinese economy, according to the report.
"Xi never had the intention to weaken the state's role in the economy, and the plan reflects that," said a government adviser.