Boosting the development of a mixed-ownership economy is a key part of China's overall economy. An official from the State-owned Assets Supervision and Administration Commission of the State Council, and an expert with the Chinese Academy of Governance explained the initiative.
Plans to reform China's state-owned enterprises include the introduction of "mixed ownership" by bringing in private investment. The move is designed to inject new growth engines into the economy.
"The development of a mixed-ownership economy and mixed-ownership enterprise holdings will bring some vitality," said Lu Yongzhen, deputy director, Research Center of SASAC.
"Also, supervision should be strengthened as the state-owned enterprises play an important role in promoting China's modernization. Only by strengthening the supervision of state-owned firms, can they keep sustainable, long-term growth. So, the combination of strengthening the vitality and supervision, I think is one of the biggest highlights in this round of reforms."
The guideline has not set any specific timetable for the mixed-ownership reform.
And Lu Yongzhen says no forced action should be taken.
"In particular, we should note that setting an impractical timetable and unrealistic standards for promoting mixed ownership will not help the development of the enterprises," Lu said.
"The initiative should be carried out steadily in accordance with the actual situation of the enterprises and the market. The process will only move ahead in those enterprises that go with the plan. Otherwise, this could have the opposite effect."
Zhang Chunxiao from the Chinese Academy of Governance says it's important to make a larger economic cake.
"When we talk about the boosting of a mixed-ownership economy, we don't mean to cut out the 'piece of cake' of the national asset part. We mean to welcome more excellent strategic investors and to increase the stock asset, thus to make the cake bigger. This is one part," he said.
"In addition, we also need to make a cake made of both the state-owned economy and non-state economy. Therefore we have both the old cake and the new cake. When they add up together, it is a bigger cake."