China will definitely benefit in the long run because their companies will be able to compete on the same level as other international companies. For example, ebay is not number one in China–a Chinese auction site is. I doubt that the Chinese auction site would be as successful if it were a government company.

Thanks for checking in. I agree.

I think so.I’m a chinese student from mainland China(study in Macao now) so I guess I know how things are happening around me.
There is term “铁饭碗”meaning permanent job（which is usually jobs of the government) in China.That is, once you get the job you wil be monthly paid and there is no worry about being laid off and then the employees will be lazy.In light of their quality of products and services,a dramatic drop will be seen.It’s not a good thing for the government.Right? so in order to avoid things like the above ,the government make a lot of regulations to promote privatization to enhance the competitiveness of a company.It is good for the private company and the government.Why not do that?

That is my private opinion.

“Is this the right move?”

I don’t think they have a choice. State run firms just can’t compete over the long haul in today’s global economy. But to privatize, China also needs to to simultaneously develop its rule of law so that people know where they stand re: who owns property, who can transfer it, etc. See, e.g., yesterday’s Wall Street Journal article, China Builds Commerce Codes, which shows they are trying to do just that to in part assist the selling off of state firms.