Suggestions for a Classification Scheme for Mixed-Ownership Reform

This chapter elaborates on a proposed classification scheme for mixed-ownership reform, aiming to clarify the interplay between the market and government roles within SOEs. It outlines a detailed framework for classifying and supervising SOEs based on their core functions, distinguishing between public welfare and profit-making entities. The chapter discusses the significance of accurately defining SOE functions, enhancing supervision through focused capital management, and promoting reforms tailored to the classification of SOEs. It emphasizes the need for a nuanced approach to equity control, governance structures, personnel management, and incentive mechanisms, offering insights into the regulatory methods appropriate for different types of SOEs. Additionally, it examines the classification and supervision schemes in Beijing and Shanghai as representative models, providing a practical perspective on implementing mixed-ownership reforms at the local level.