China stresses Party leadership in SOE reforms

China's central authorities on Sunday issued a guideline to strengthen the leadership and supervision of the Communist Party of China (CPC) over its state-owned enterprises (SOEs).

"The CPC leadership can only be strengthened rather than undermined as SOE reforms have entered the deep-water zone," said the document released by the General Office of the CPC Central Committee.

The Party leadership over SOEs is vital in ensuring the socialist direction of their development and enhance their competitiveness and competence, it added.

The guideline stressed the principle of the CPC in charge of executive selection in SOEs, urging to build a selection mechanism that meets requirements of modern enterprise system and market competition.

To strengthen the CPC leadership in SOEs, the statutory status of the Party organizations in firms should be clarified in corporate governance structure, it said.

The Party will also enhance supervision over SOE leaders in order to prevent abuse of power and erosion of state-owned assets.

China unveiled a guideline to deepen SOE reforms featuring measures to modernize companies, enhance state assets management, promote mixed ownership and prevent erosion of state assets last Sunday.