Research on the Alignment of China's Institutional Framework with the Competitive Neutrality Policy for State-Owned Enterprises under the CPTPP Framework

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (hereinafter referred to as CPTPP) represents a high-standard free trade agreement of the 21st century. One of its core provisions is the "competitive neutrality" policy targeting State-Owned Enterprises (SOEs). This policy aims to eliminate undue competitive advantages arising from state ownership or control, ensuring fair competition between SOEs and private enterprises in the market. China formally submitted its application to join the CPTPP on September 16, 2021 [[footnoteRef:0]], but it was not approved. This indicates discrepancies between China's current SOE governance model and the CPTPP's competitive neutrality rules. China is actively advancing its SOE reforms to align with high-standard international economic and trade rules such as those of the CPTPP. This paper aims to analyze the core requirements of the CPTPP's competitive neutrality rules, examine the differences between China's SOE system and these requirements, and, based on this analysis, systematically explore pathways and strategies for China to achieve institutional alignment with the CPTPP's competitive neutrality rules. This exploration will encompass multiple dimensions including China's legal framework for SOE competitive neutrality, corporate governance, regulatory systems, and industrial policy transformation. The goal is to provide theoretical reference and practical guidance for China's application to join the CPTPP.