News

    China to allow private capital into more state projects

    (Xinhua)
    Updated: 2014-03-05 10:44

    BEIJING - China will speed up the development of mixed-ownership economy by letting non-state capital into more state projects, including those in oil, railways and telecoms, according to a government work report delivered by Premier Li Keqiang on Wednesday.

    "We will formulate measures for non-state capital to participate in investment projects of central government enterprises," Li said at the opening of the annual session of the National People's Congress, China's top legislature.

    Non-state capital will be allowed to participate in a number of projects in areas such as banking, oil, electricity, railway, telecommunications, resources development and public utilities, according to the report.

    The government pledged to reform the railway investment and financing system, and to open competitive operations in more areas to encourage full participation of private capital.

    The government also announced some reform moves targeted at the country's state-owned enterprises (SOEs).

    "We will improve the system for managing state-owned assets, clearly define the functions of different SOEs, and carry out trials of investing state capital in corporate operations," Li said.

    A reform masterplan released after a key plenum of the Communist Party of China Central Committee in November pledged to let market play a decisive role and recognized the private sector's role in fostering growth and creating jobs.

    The November document said China shall actively develop a mixed ownership economy, allowing more SOEs and other firms to develop into mixed-ownership companies.

    China's top oil refiner Sinopec announced in mid-February that it would bring in social and private capital to jointly market and sell its oil products, the first opening up of the largely monopolized sector.

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