State-owned enterprises (SOEs) welcome foreign capital and are open to all kinds of businesses, including foreign companies, to participate in China's SOE mixed-ownership reform, Xiao Yaqing, Minister of the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC), said at a news conference during the first session of the 13th National People's Congress on March 10.
Starting in November 2016 through March 2017, the National Development and Reform Commission and the SASAC launched two rounds of pilot projects for SOE mixed-ownership reform. With nine SOEs in the first round and 10 in the second, the projects covered areas such as electricity distribution and sales, power equipment, high-speed railways, airline logistics, telecommunications and finance. The third round is currently underway.
The reason we promote mixed-ownership reform is to have each side enjoy its maximum value by sharing benefits and complementary advantages, Xiao explained.
As for SOE’s globalization, Xiao said it has proven more difficult in the context of the overall development of economic globalization due to more risks involved in the process of pursuing international projects.
“For globalization, we need to learn from other international enterprises on the one hand, and on the other, we are set to further enhance cooperation and opening up,” Xiao said.
There are 9,112 branches of the centrally-administered SOEs internationally so far, covering 185 countries and regions with total assets reaching 700 million yuan ($111 million).
“Only cooperation-based competition can realize ‘win-win’ and ’multiple win’ outcomes in this information era,” he said.
In response to a question from Reuters about the investigation of China’s investments overseas, Xiao commented, “I fully understand the need for investigations of investment projects into a country or region, however, I also think all the projects should be investigated equally.
“Particularly now with massive uncertainties in economic development, hopefully we can all work hard to maintain the trend of globalization…and contribute to economic development in a positive way,” Xiao added.
Copyedited by Rebeca Toledo
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