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Foreign investors able to buy large SOEs

www.chinanews.cn 2005-09-16 08:58:51

(Source: China Daily)

BEIJING, Sept. 16 - International investors may take full control of
almost all State-owned enterprises (SOEs) in Northeast China's Liaoning
Province, according to an announcement yesterday by the province's
Vice-Governor Li Wancai. The only exceptions to the new rules are SOEs
under control of the central government and coal mines.
Li said Liaoning will push forward 200 items for international
co-operation in such industries as manufacturing, petrochemicals and
pharmaceuticals.
Liaoning is one of the last bastions of the planned economy in China
where SOEs still dominate. International co-operation had been restricted
to small and medium-sized SOEs and private companies.
Large SOEs have previously been a minefield for foreign investors.
Although there has been co-operation, foreign investors have never been
allowed a majority share.
Now, according to Li, international investors may take full control.
"This may seem a rather bold action - even today, when China has had its
door open for more than two decades," said Liu Changjie, a freelance
writer for the Economic Observer. "But I think this was a must for local
governments."
The purpose of the No 36 document, which the central government actually
issued a month ago, is to help the industries in the Northeast attract
more investment. To revive the region, the central government has
provided more preferential policies for foreign companies that invest
there.
It is a policy that will continue.

          ��China to retain not more than 100 SOEs
          ��Restructuring of SOEs centred
          ��Northeastern SOEs to get tax break
          ��SOEs reported big economic growth in 2004
          ��Breakthrough in reforming SOEs

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