This paper aims to capture the changing features of local SOEs under the nationalSOE restructuring program in the 2000s. The national policy on SOE reform in thisphase had an effect of considerably clarifying and narrowing down the raison d\u27êtreof SOEs, which has been put into practice at the local level through provincial masterplans. Consequently, some signs of an important change are observed: the structureof the local SOE sector is being standardized to a certain extent, and the remaininglocal SOEs are becoming more geared to the needs of a market economy. Thistrend would have far-reaching implications for the policy implementation and publicservice delivery by localities, which in turn would affect the long-term developmentof non-state sectors