Drastic reduction seen as crucial to the nation's reform drive
A pledge to speed up the restructuring of state-owned companies has been made by a central government department.
The Assets Supervision and Administration Commission is pledging to bring the 179 companies under its direct supervision down to about 80.
Commission director Li Rongrong said the final bunch of state companies would be confined to industries of strategic significance to the economy, which includes banking, power, petroleum, telecommunications and aviation. 'As for the rest of the state-owned enterprises, they should either be sold off, contracted out or be incorporated into and merged with each other,' Mr Li was quoted as saying by Xinhua.
He said the drastic reduction in state-owned enterprises was crucial in the country's drive to build a modern enterprise management regime and eventually achieve the goal of ownership diversification.
The average level of state assets in the national economy is about 5 per cent in developed countries and 10 per cent in developing countries, while in China it will still be as high as 30 per cent by the end of this year, according to official figures.
Mr Li reiterated his commission's determination to produce 30 to 50 giant enterprises and group companies, on a par with international standards, within five years.
