Wang also said that SOEs face further reform, as mandated by the report, which said the vitality, dominance and influence of the State-owned economy should be strengthened through reform.
He admitted that reform in some sectors has lagged behind.
"Market-oriented reform requires breaking down the SOE monopolies, especially in competitive sectors such as the petroleum industry, and allowing more private businesses to compete," Zhou Hongchun, a researcher with the Development Research Center of the State Council, told the Global Times Monday.
"A large number of SOEs does not necessarily mean they are competitive in the market," said Zhou, explaining that problems still exist, such as the loss of State-owned assets when SOEs transform into corporations.
While delivering a report on SOE reform at the bi-monthly session of the Standing Committee of the National People's Congress, Wang said many SOEs are inclined to expand business or increase revenues instead of cracking the hard nut of reform and improving efficiency.
Xinhua contributed to this story
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