China doesn't set boundaries on SOEs and private enterprises mergers
Updated 09:37, 13-Oct-2020
By Liu Yacan

The Chinese State-owned Assets Supervision and Administration Commission said China has never set boundaries in the merger and reorganization of state-owned and private enterprises, and will further promote structural reform and facilitate enterprises' ability to play a bigger role in addressing unbalanced development.

China will continue to explore effective means of mixed ownership reform in key areas such as electricity, civil aviation, telecommunications, and defense, said Weng Jieming, vice chairman of the State-owned Assets Supervision and Administration Commission.

Since 2013, China has completed more than 4,000 cases of mixed ownership reform, with more than 1.5 trillion yuan of non-state capital involved, while increasing the proportion of mixed ownership SOEs to over 70 percent, added Weng.

Weng said in the future the authorities will deepen supply side structural reform and enhance the self-innovation capacity of SOEs.

This reform will help companies with various ownership schemes leverage their respective, as well as to improve state-owned capital allocation and operation efficiency.

The mergers and reorganizations between state-owned enterprises and private enterprises, central enterprises and central enterprises, as well as that between central enterprises and local SOEs are all supported, officials stressed.