China renews drive for corporate reform as US rivalry grows ‘fiercer’: analysts

By 2035, Beijing aims to turn more state and privately owned companies into innovative, resilient and globally competitive firms with modern corporate governance structures, according to new guidelines released this week.

“Fiercer competition between China and the US will play out between companies from the two countries … Going forward, it’s China Inc. versus US Inc.,” said Fu Weigang, president of the Shanghai Institute of Finance and Law think tank.

“Chinese businesses still get the short end of the stick in numerous domains despite huge progress. This document reflects Beijing’s greater emphasis on better governance to increase their competitiveness.

In a sign of their importance, the guidelines were jointly issued by the Communist Party’s Central Committee and the State Council, China’s cabinet.

Beijing has previously said that modern corporate governance features clear property rights, clear rights and responsibilities and a scientific model of management. It has also included requirements to entrench Party leadership, even in private firms.