(CFP)

He Xiangjian, 70, Chairman of the Board and President of Midea Group, one of China's largest home appliance producers, announced on August 25 he is leaving the top position with the privately owned electronics giant.

He's resignation will be followed by a huge management restructuring, in which a group of younger managers will take leading positions in the corporation. However, He will continue to make contributions to Midea as its largest shareholder, the announcement said.

Midea's leadership transition provides the long-awaited answer to whether it would continue to remain a family firm or grow into a publicly listed enterprise.

It is believed that the leadership change of Midea not only ushers in a new era for the corporation, but also offers a successful example for many other private enterprises in China. In the next 10 years, most Chinese private companies will face the challenge of leadership transition as their founders go into retirement.