The Role of State-Owned Enterprises (SOEs)

State-Owned Enterprises (SOEs) play a crucial role in maintaining the Communist Party's control over various sectors of the Chinese economy. While the narrative emphasizes the rise of the private sector since Deng Xiaoping's reforms, SOEs remain integral as a mechanism for the state to regulate energy, banking, and critical resources. The Communist Party prioritizes control over efficiency, accepting that SOEs may be less productive than private enterprises, as they provide leverage over employment and material access. Consequently, SOEs are not seen as a decreasing element in China's economic structure, but rather a necessary feature that supports the Party's dominance.