Chinese President Xi Jinping set in motion the overhaul of the country’s bloated state companies just ahead of his U.S. visit , in a bid to show Beijing is committed to change even as the economy slows . A plan released Sunday, however, represents a modest fix to China’s brand of state capitalism. It attempts to enhance state companies’ returns by letting them add private investors. It also tries to improve state companies’ competitiveness overseas by making them bigger, though that risks creating more inefficiency and further stymieing private enterprise. Crucially, the plan doesn’t specify whether underperforming state firms will be allowed to fail, a measure economists say would be critical to its success. The plan reflects Mr. Xi’s belief, according to officials familiar with his thinking, that the state sector, rather than taking a back seat, should be improved to continue to play a dominant role in the […]