China plans more post-Olympics reforms for state enterprises
Tuesday, 12 August 2008
BEIJING, Aug 11 (Agencies): A Chinese official said yesterday that after the Olympics, the government would intervene in the consolidation of centrally-administered state-owned enterprises (SOEs) instead of letting them regroup on a voluntary basis.
The Olympics wrap up in late August and the Paralympics finish in mid-September.
"The target of reducing the total number of centrally-administered SOEs to 80 to 100 by 2010 is unchanged," said Li Rongrong, chairman of the state-owned assets supervision and administration commission ( SASAC), at a press conference at the Beijing International Media Centre.
There were 149 such SOEs at the end of 2007.
He said SASAC made the decision because many centrally-administered SOEs had no national economic security role and should compete in the market.
The centrally-administered SOEs made great contributions to building venues and supplying power and oil to the Games. They had also offered expertise and innovation in the space programme and the development of the new fighter jet, the J-10, he said.
Amid fluctuating global oil and raw material prices and especially during the harsh winter and the disastrous quake in Sichuan this year, many such enterprises sustained losses to keep domestic prices stable.
Li said SASAC had no plan at present to regroup the five state-owned power companies. However, it would speed up the rationalisation of state-owned real estate companies to no more than 15.
He said the central government would remain the dominant shareholder of these SOEs and these enterprises should "make positive contributions" to the healthy development of China's stock market.
Meanwhile, China's trade surplus swelled in July to its highest level in eight months as its trade gaps with the United States and Europe grew despite concern about weaker global demand, according to data reported Monday.
Export growth rebounded in July, the customs agency said, after a June slowdown prompted Beijing to boost tax rebates for struggling textile exporters.
"Though we expect a continued deterioration as the year goes on, as American and European consumers stay at home, the resilience of demand for China's exports is still remarkable," said Standard Chartered economist Stephen Green in a report to clients.
China's global trade surplus in July was $25.3 billion, the agency said, up 4 per cent from the same month in 2007.
Exports in July soared by 26.9 per cent to $136.7 billion, the data showed. That came after export growth fell in June to 18.2 per cent, down from May's 28 per cent rate. Imports in July also grew strongly, rising by 33 per cent to $111.4 billion.
The trade gap has strained relations with China's trading partners, fuelling demands for action on currency controls and barriers to imports and investment. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act.
Demand for Chinese exports is expected to soften as the effects of the US credit crisis spread. But developing economies, key markets for Chinese-made machinery, trucks and other industrial goods, are still relatively strong.
China's trade surplus with the United States widened by 13.8 per cent over the year-earlier period to $16.4 billion, according to customs data. The surplus with the 27-nation European Union, China's biggest trading partner, ballooned by 22.9 per cent to $15.
Exporters have suffered from a rise in China's currency, the yuan, against the dollar, which makes their goods more expensive in the United States. But the yuan is falling against the euro, making their exports more attractive to European consumers.
Chinese leaders are trying to narrow the trade gap to reduce the flood of money that is pouring into the economy and adding to pressure for prices to rise. They have cut export-related tax rebates and imposed curbs on sales of goods such as steel and plastic that are considered too dirty or energy-intensive to produce.
But the government raised rebates of value-added taxes on textile exporters after foreign sales fell 4.2 per cent in June. Planners are believed to be looking at similar targetted measures to help other struggling export industries.
The July monthly surplus was China's highest since November, when the country recorded a trade gap of $26.3 billion.
The Olympics wrap up in late August and the Paralympics finish in mid-September.
"The target of reducing the total number of centrally-administered SOEs to 80 to 100 by 2010 is unchanged," said Li Rongrong, chairman of the state-owned assets supervision and administration commission ( SASAC), at a press conference at the Beijing International Media Centre.
There were 149 such SOEs at the end of 2007.
He said SASAC made the decision because many centrally-administered SOEs had no national economic security role and should compete in the market.
The centrally-administered SOEs made great contributions to building venues and supplying power and oil to the Games. They had also offered expertise and innovation in the space programme and the development of the new fighter jet, the J-10, he said.
Amid fluctuating global oil and raw material prices and especially during the harsh winter and the disastrous quake in Sichuan this year, many such enterprises sustained losses to keep domestic prices stable.
Li said SASAC had no plan at present to regroup the five state-owned power companies. However, it would speed up the rationalisation of state-owned real estate companies to no more than 15.
He said the central government would remain the dominant shareholder of these SOEs and these enterprises should "make positive contributions" to the healthy development of China's stock market.
Meanwhile, China's trade surplus swelled in July to its highest level in eight months as its trade gaps with the United States and Europe grew despite concern about weaker global demand, according to data reported Monday.
Export growth rebounded in July, the customs agency said, after a June slowdown prompted Beijing to boost tax rebates for struggling textile exporters.
"Though we expect a continued deterioration as the year goes on, as American and European consumers stay at home, the resilience of demand for China's exports is still remarkable," said Standard Chartered economist Stephen Green in a report to clients.
China's global trade surplus in July was $25.3 billion, the agency said, up 4 per cent from the same month in 2007.
Exports in July soared by 26.9 per cent to $136.7 billion, the data showed. That came after export growth fell in June to 18.2 per cent, down from May's 28 per cent rate. Imports in July also grew strongly, rising by 33 per cent to $111.4 billion.
The trade gap has strained relations with China's trading partners, fuelling demands for action on currency controls and barriers to imports and investment. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act.
Demand for Chinese exports is expected to soften as the effects of the US credit crisis spread. But developing economies, key markets for Chinese-made machinery, trucks and other industrial goods, are still relatively strong.
China's trade surplus with the United States widened by 13.8 per cent over the year-earlier period to $16.4 billion, according to customs data. The surplus with the 27-nation European Union, China's biggest trading partner, ballooned by 22.9 per cent to $15.
Exporters have suffered from a rise in China's currency, the yuan, against the dollar, which makes their goods more expensive in the United States. But the yuan is falling against the euro, making their exports more attractive to European consumers.
Chinese leaders are trying to narrow the trade gap to reduce the flood of money that is pouring into the economy and adding to pressure for prices to rise. They have cut export-related tax rebates and imposed curbs on sales of goods such as steel and plastic that are considered too dirty or energy-intensive to produce.
But the government raised rebates of value-added taxes on textile exporters after foreign sales fell 4.2 per cent in June. Planners are believed to be looking at similar targetted measures to help other struggling export industries.
The July monthly surplus was China's highest since November, when the country recorded a trade gap of $26.3 billion.