China's Communist Party gets more say in state-owned enterprises

Beijing

CHINESE President Xi Jinping is putting more of the "state" in "state-owned enterprise" (SOE). Carmaker FAW Car Co, fibre producer Sinoma Science & Technology Co and miner Tibet Mineral Development Co have recently modified their bylaws to give Mr Xi's Communist Party more oversight of management decisions. For example, company boards will now have an obligation to listen to internal party committees before making major decisions.

"Communist Party officials are stepping up intervention in day-to-day operations of state-owned corporations," said Xu Baoli, a senior researcher with the State-owned Assets Supervision and Administration Commission, the government's main SOE regulator. "There were cases in the past where the board would reject a proposal that had gone through the party. I doubt whether that will happen in the future."