In a move that could reshape the future of the state sector, the Standing Committee of the National People's Congress on the Chinese mainland began deliberating a draft law on state-owned assets on December 22, 2025. This draft, spanning 62 articles across seven chapters, marks the Chinese mainland’s first comprehensive attempt to codify rules for managing and overseeing state-owned assets.
Why It Matters
State-owned assets on the Chinese mainland now number in the trillions of yuan, with enterprises branching into tech, finance, and renewable energy. Yet as models diversify—from traditional manufacturing to digital platforms—calls for stronger governance have mounted. Legal experts say the new law aims to boost transparency, enforce accountability, and drive high-quality development across sectors.
Key Provisions
- Party Leadership: The law reaffirms the Party’s leadership role in guiding state-owned asset governance.
- Standardized Oversight: It sets clear protocols for audits, asset transfers, and performance evaluations.
- Legal Protection: Through stronger legal safeguards, the legislation seeks to protect assets from misuse and ensure efficient utilization.
Context and Next Steps
During the Central Economic Work Conference on December 11, the Chinese leadership outlined plans to tackle involution, push reforms in state-owned enterprises, and enhance capital market support for both public and private sectors. If approved after further readings, the draft law could roll out in mid-2026, shaping how state assets fuel innovation and sustainable growth.
For global investors and business innovators, these changes signal a more predictable legal environment—one that could open doors for collaboration with state-owned enterprises on digital infrastructure, green energy, and emerging technologies. As the world watches, the Chinese mainland’s push to modernize its state sector will be a key test of how policy reforms can keep pace with rapid economic shifts.
Reference(s):
cgtn.com