Political Appointments Spark Concerns Over State-Owned Enterprise Governance in A City

In 2021, the Organization Department of the A Municipal Committee successively appointed a senior official of the China Securities Regulatory Commission and a deputy department-level cadre of A City as the president and chairman of a state-owned enterprise, respectively. The former president and chairman no longer serve as core management personnel of the company. This move has sparked speculation from all walks of life about the development of state-owned enterprises shifting from market competition mechanisms to political affiliation mechanisms.