Reform of state-owned enterprises
There have been several rounds of reform involving SOEs since the rollout of the reform and opening-up program, including the introduction of a contract system, a program to replace turning over business profits with income tax, implementation of managerial accountability, and promotion of modern corporate governance. At its third plenary session in 1993, the 14th CPC Central Committee called for modernizing corporate management, a move that paved the way for accelerating SOE reform. At its third plenary session in 2013, the 18th CPC Central Committee called for pursuing SOE reform at a deeper level. The year 2016 was a watershed year when the implementation of new reform policies began. To support a new round of SOE reform, the 2016 report on the work of the government outlined a series of pilot measures, such as diversification of forms of ownership – including introduction of mixed ownership – establishment of corporate boards of directors, open selection of executives and managers, and introduction of employee equity stakes. These measures were accompanied by initiatives to reform and reorganize national capital investment and management corporations. Together, they opened a chapter in SOE reform.