Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200808/20080812/article_370104.htm
Another bid to push SOEs to combine
Created: 2008-8-12 0:27:52
Author:Lee Spears
CHINA'S government said it will resume a push to force the nation's biggest state-owned companies to consolidate into fewer, larger groups to help them compete.
The State-Owned Assets Supervision and Administration Commission will reduce the country's 149 state-run enterprises to between 80 and 100, said agency Chairman Li Rongrong at a Beijing press briefing on Sunday. The government will no longer keep the combination voluntary, he said.
"Some of these enterprises don't have a role in ensuring national economic security," Li said. "They should enter further into market competition, and the pace of these steps will quicken after the Olympics."
China is streamlining its state-owned sector to nurture industries that will be more competitive as foreign companies gain more access to the economy under the World Trade Organization, which it joined in 2001, Bloomberg News said.
The government has said it plans to foster as many as 50 of its directly run companies in the defense, energy, aviation and shipping industries to help them become globally competitive. "The process of consolidation will shift after the Olympics period to one pushed by the commission, from a voluntary process by the companies," Li said.
China won't consolidate the nation's five largest state-owned power companies, even though they all lost money in the first half, Li said.
The State-Owned Assets Supervision and Administration Commission will reduce the country's 149 state-run enterprises to between 80 and 100, said agency Chairman Li Rongrong at a Beijing press briefing on Sunday. The government will no longer keep the combination voluntary, he said.
"Some of these enterprises don't have a role in ensuring national economic security," Li said. "They should enter further into market competition, and the pace of these steps will quicken after the Olympics."
China is streamlining its state-owned sector to nurture industries that will be more competitive as foreign companies gain more access to the economy under the World Trade Organization, which it joined in 2001, Bloomberg News said.
The government has said it plans to foster as many as 50 of its directly run companies in the defense, energy, aviation and shipping industries to help them become globally competitive. "The process of consolidation will shift after the Olympics period to one pushed by the commission, from a voluntary process by the companies," Li said.
China won't consolidate the nation's five largest state-owned power companies, even though they all lost money in the first half, Li said.
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