China to cut central SOEs to 30-50 in 5 yrs

China will reduce the number of its centrally-administered State-owned Enterprises (SOEs) from 123 at the end of September to between 80 and 100 by the end of this year and to 30-50 during the 12th Five-Year Plan (2011-15) period, ce.cn reported on Monday.

Remaining central SOEs must have their own intellectual property, represent world-famous brands and be internationally competitive, the report said, quoting Li Baomin, director at the research center under the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

A surviving central SOE also must have a well-governed corporate structure and diversified proprietorship, Li said Oct 30 at an economic outlook forum on the 12th Five-Year Plan.

Li said reforming the income distribution system in monopolized sectors is part of the next five-year plan. Those reforms will be planned according to categories, segments and levels of monopolies, Li said.

People have blamed the two State-owned companies' monopoly on gasoline for a recent hike in gas prices, but Li said the accusations are wrong.
 

Source: China Daily