Deals
China Unveils Guidelines to Overhaul Bloated State Companies
- Plan seeks to attract private investment to state companies
- Overhaul aims to boost efficieny, shore up economic growth
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China announced long-awaited guidelines to make its bloated state-owned enterprises more efficient as policy makers search for ways of reinvigorating a $10 trillion economy that’s headed for its slowest growth in a quarter century.
The guidelines, announced over the weekend and elaborated on at a briefing Monday, stressed the need to reform "zombie" companies and step up the privatization of SOEs by attracting more outside capital. While the government statements were thin on specifics, National Development and Reform Commission Vice Chairman Lian Weiliang said details on SOE mixed ownership and energy-sector reforms will be released this year.