China pledges further reform of state-dominated industries

The Chinese government has vowed to reform state-dominated sectors and grow the market entry of industries such as telecommunications, a senior economic official said Wednesday.

The country will stick to reforming its state-owned enterprises and engaging them in the market, said Wang Yong, director of the State-owned Assets Supervision and Administration Commission (SASAC).

He made the comments while delivering a report on state-owned enterprises reform at the bi-monthly session of the Standing Committee of the National People’s Congress (NPC), China’s top legislature.

The country will speed up the reform of railways, the postal service and salt industry so that companies in these sectors could be peeled off from the role of watchdog and stakeholder, Wang said.

“More efforts will be made to reform industries such as power supply, telecommunications, oil and petrochemical. The market entry into these sectors will be expanded based on the development of these industries,” he said.

The government will push for large state-owned enterprises to go public or list their main business if conditions allow, Wang said.

For those who are not fit for listing, the country will encourage them to speed up restructuring. It will also introduce corporate governance into companies solely held by the state, he said.

China has endeavored to reform its bulky state-owned enterprises since it introduced the market economy and opened up in the late 1970s.

Xinhua