Is Beijing getting serious about selling off state firms?
Partial privatisation of China Unicom could set example for others in reform of sector, researcher says
Beijing is again trying to reinvigorate its reform of state-run firms by selling off stakes to investors, and all eyes are on telecoms operator China Unicom.
Alibaba Group and Tencent Holdings are expected to lead the way to invest US$10 billion in the telecoms firm, Reuters reported. It is one of three state-owned telecoms operators.
China Unicom said in a statement it was talking to potential investors but declined to name any. Alibaba is the owner of the South China Morning Post.
There could be a breakthrough in ownership of China Unicom in the coming weeks which would set an example for other state businesses to follow, according to Li Jin, chief researcher with the China Enterprise Research Institute, a government-backed think tank in Beijing.
Li said Beijing was in need of a case like China Unicom “to deliver a satisfying answer to the [19th] Party Congress”, referring to the key leadership reshuffle in autumn.
After more than three decades of trials and experimenting, Beijing is still looking for the best way to turn state-run firms into modern, profitable and efficient businesses that will at the same time stay loyal to the ruling Communist Party.