The amount of mixed ownership reform in China’s state-owned enterprises has continued to grow, with breakthroughs in the fields of power, oil, natural gas, railways, civil aviation, telecommunications, military and other key industries, China Securities Journal reported, citing Peng Huagang, spokesman for the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

According to data released by SASAC, as of the end of 2016, mixed ownership reform between state-owned enterprises and company system enterprises accounted for 68.9% of total state-owned reforms.

Xiao Yaxing, director of the SASAC, believes that the purpose of mixed ownership reforms is to learn from one another’s strengths.

“Through the integration of state-owned and non state-owned capital, businesses can absorb the decision-making mechanisms and flexibility of private enterprises, but also stand on the strong foundation of state-owned enterprises. This is a win-win situation,” Xiao said.

Xiao also said that mixed ownership reforms are open to all kinds of company system enterprises including foreign companies, but also stressed that these reforms are “not suitable for all.”

“The next step of state-owned enterprise reforms will come on both micro and macro levels,” Xiao said. “In the micro level, corporate, board of directors and internal system reform will be the main focus, while in the macro level, we (will) focus on the implementation of strategic reorganization, reduce excess capacity and clean up ‘zombie’ enterprises.”