Li Yining: SOEs should Take the Lead in Building a Mixed Ownership Economy

By staff reporter Jiao Feng

Renowned economist Li Yining advised the development of mixed ownership as China's most pressing economic task. Speaking at a CPPCC panel discussion on March 5, Li urged mixed ownership as the most effective stimulus for other reforms.

Li emphasized that dynamic enterprises are essential for a robust economy. "Private companies will join in reform only when state-owned ones begin first ", he explained. "Private companies won't take the lead from fear of being merged. State-owned enterprises (SOE) need to initiate reforms, including structural reforms of the capital system. Some special industries might need to start later. Only then will private businesses naturally follow their example."