state-owned enterprises

The implementation of performance-based elimination systems in China’s state-owned enterprises (SOEs) has become a contentious topic that reveals deeper systemic issues within these organizations. Through multiple firsthand accounts from employees, a disturbing pattern emerges that challenges the system’s stated meritocratic goals.

China’s state-owned enterprises are undergoing significant reforms as the government aims to make them more efficient and competitive in the market economy. One key aspect of these reforms is the introduction of a “last place elimination system” that will see the lowest performing employees reassigned or laid off by 2025.

For many Chinese university students, choosing between working as a civil servant or at a state-owned enterprise (SOE) can be a challenging decision. On the surface, both careers seem to offer the stability and benefits that come with state affiliation.