China Gives Details on Privatization Deals

China has unveiled details of how it will restructure its state-owned enterprises, including partial privatisations, as data pointed to a cooling in the world’s second largest economy.

The guidelines, jointly issued by the Communist party’s central committee and the State Council, China’s cabinet, included plans to clean up and integrate some state firms, the official Xinhua news agency said. It did not elaborate.

Reform of underperforming state-owned enterprises is one of China’s most pressing needs. But if not handled well, the restructuring could lead to hundreds of thousands of people being laid off and to social instability.

Xinhua said the plans included introducing “mixed ownership” by bringing in private investment, and “decisive results” were expected by 2020.

The government will not force mixed ownership, nor will it set a timetable, giving each firm the go-ahead only when conditions are right, it said.

via The Guardian

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