Latin America’s steel association, Alacero, opposed on Tuesday China’s reform on state-owned enterprises (SOE), saying it won’t have a positive effect on the steel sector.
According to Rafael Rubio, president of Alacero, the so-called SOE reform will continue to be made with “the direction, control and subsidies of [China’s] government,” which means the country isn’t operating under market conditions.
Alacero has reiterated several times that China should not be considered a market economy.
Commenting the country’s reform on its state-owned enterprises, the Alacero president noted China has made “partial” and “fragmented” actions under its SOE reform until July 26, when the Asian country announced the “principles” that should drive such a reform.
Alacero noted that Chinese reform for state-run companies puts them into four main categories: strategic (telecommunications, energy), innovation (internet), consolidation (steel, machinery) and elimination (steel, coal).