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Rationalisation of State-Owned Enterprises Continues

The government-driven consolidation of China’s state-owned enterprise (SOE) sector continues. The State-owned Assets Supervision and Administration Commission (SASAC) has reported that the total number of Chinese SOEs has now shrunk to 132, from 135, following three more recent mergers. China’s State Council has approved the merger of Changsha Research Institute of Mining and Metallurgy and Luzhong Metallurgical Mining Group as subsidiaries of China Minmetals Corp. Meanwhile, China Xinxing Corp (Group) is now a subsidiary of China General Technology (Group) Holding, Ltd.

The State-owned Assets Supervision and Administration Commission was set up in 2003 to control the rationalization of the 196 SOEs then in existence. Today’s total of 132 centrally-administered SOEs is targeted to be whittled down further, to “between 80 and 100” by the end of 2010, according to a commission spokesperson.

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