What's the purpose of our nation managing certain industries? When profit in key state-owned industries are bulging, very few people ask this question. And if this is the case, do they really need to reformed? This is what many think.  

After joining the WTO, China's liberalizing economy has gone in a new direction, one where the nation should not control society's resources but instead let the market allocate them. From this angle, the better that SOE’s are doing, the more imperative reform is. The nation should thoroughly retreat from those competitive industries, let the market more effectively deploy resources, and reduce the distortions brought by monopolies. In this way the market share of state owned firms will decrease and the state-owned share of the economy will shrink, but along with the economy as a whole experiencing more efficient use of its resources, China's economy, and per-capita wealth, will grow.