Reforming State-owned enterprises is a challenging task, says an article in China Business News (excerpts below).

Some State-owned enterprises have admitted, in their financial reports, to having enormous expense budgets. This coupled with, in some cases, poor management, means that the State is footing the bill for inadequate performances.

But the people responsible are seldom punished.

If the problem is not addressed properly, it will spark public anger.

There must be strict regulations and supervision of all enterprises, especially their expense budgets.

The central government should start national wealth distribution reform by targeting executive income so that pay is related to performance. This will not be easy but it is necessary.