Business / Economy

Li encourages private capital to participate in State-owned joint ventures

By Yu Ran in Shanghai (China Daily) Updated: 2014-03-06 07:18

A mixed-ownership economy will be encouraged by allowing non-State capital to invest in State projects in the oil, railway and telecom sectors, according to a government work report delivered by Premier Li Keqiang on Wednesday.

"We will formulate measures for non-State capital to participate in investment projects of central government enterprises," Li said at the opening of the annual session of the National People's Congress.

Li encourages private capital to participate in State-owned joint ventures

Sinopec is allowing in private investors

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Non-State capital will be allowed to participate in projects in areas such as banking, oil, electricity, railways, telecommunications, resource development and public utilities, the report said.

The government has pledged to reform the railway investment and financing system, and to open competitive operations in more areas to encourage full participation of private capital.

The government also announced some reform moves for the country's State-owned enterprises.

"We will improve the system for managing State-owned assets, clearly define the functions of different SOEs and carry out trials for investing State capital in corporate operations," Li said.

A reform master plan released after a key plenum of the Communist Party of China Central Committee in November pledged to let the market play a decisive role and recognized the private sector's role in fostering growth and creating jobs.

The November document said China will actively promote a mixed-ownership economy, allowing more SOEs and other firms to develop into mixed-ownership companies.

Sinopec, China's top oil refiner, announced in mid-February that it would bring in social and private capital to jointly market and sell its oil products, the first opening up of the largely monopolized sector.