Date
20 July 2018

SASAC plans SOE reform after party plenum

The State-owned Assets Supervision and Administration Commission (SASAC) will propose a much awaited reform of state-owned enterprises (SOEs) after the third plenary session of the Communist Party of China, it said in a statement Thursday.

The plenum is scheduled for Nov. 9 to 12.

The proposal will redefine roles and functions in the wider operations of SOEs and strengthen oversight of their local offices. 

Also, the government wants SOEs to be more competitive in a freer market.       

“It is important to have a clear-cut [relationship] between the government and SOEs to ensure a smooth reform process,” SASAC deputy director Huang Shuhe {黃淑和} said in speech on Oct. 20.

“Management of offshore subsidiaries and legal operations should be tightly supervised. The commission will extend the legal risk mechanism from contract signing to operations of offshore business including overseas listings and acquisitions, as well as large projects,” Huang said.

The planned reform comes as China’s steel, coal, construction materials, chemical, shipbuilding and heavy machinery industries suffer from overcapacity and low profits, he said.

– Contact HKEJ at [email protected]

AM/JP/RA

 

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