Ahead of China's most important annual political meetings, the "Two Sessions", many reform plans are being proposed by the country's policymakers. In the northeast, where state-owned enterprises still hold a dominant position in the economy, promoting mixed ownership has been the buzz in recent years. GUAN YANG has more.  

After several rounds of mergers and acquisitions, the local auto giant from Shenyang - Brilliance Group - came up with the least expected product - a caravan. It was a decision made by the board of directors, including private investors whose voices count.

LI MINGCHENG, EXECUTIVE DIRECTOR CARAVAN DIVISION, BRILLIANCE SERVICE VEHICLES "To be successful in the caravan industry requires the company to respond quickly to market trends. The participation of private investors in the decision-making process helps realize the plan; it wouldn't be possible if it was in the rigid system of typical SOEs."

GUAN YANG DALIAN, LIAONING PROVINCE Most state-owned enterprises in China are controlled by the central government, which owns at least half of their shares. Under this arrangement, the central government sees anyone who buys shares as financially motivated, and gives them little or no say in the company's planning and decision making process. The new plan is to treat investors as partners who can profit through their holdings by working with SOEs to create new products and services.

The caravan business is a huge success within the auto group: Workers were taking extra shifts to meet delivery time even during the spring festival holiday.

In a market economy, capital flows to where profits are. Besides caravans, the SOE has also rolled out new energy service vehicles in its product list.

JIANG YUHUA, MANAGING DIRECTOR BRILLIANCE SERVICE VEHICLES "The biggest advantage of a mixed ownership structure for large SOEs is that, the state-owned firm has the funds, and the private capital knows better what the market wants. After the reform, removing the state from day-to-day control and strengthening the role of shareholders leads to progress."

Nationwide, China picked a group of 31 SOEs for the third round of mixed ownership reform last November to further diversify the ownership structure, going beyond mergers, acquisitions and reorganization. The aims are to eliminate zombie companies, curbing overcapacity, and streamlining administration. In simple terms - letting the market decide.

LIU PENGCHENG, CEO BRILLIANCE AUTO GROUP "We will further push the mixed ownership reform, in areas like the production of core components, the doors are wide open for private capital."

GUAN YANG, CGTN, Liaoning Province.