China Looking at Boosting Private Role in Industry

AP reports:

The government will “speed up research into encouraging private investment” in oil, power generation, telecommunications and other fields, the National Development and Reform Commission statement said.

The move is also aimed at countering monopolies or quasi monopolies in various industries, a legacy of decades of centralized planning.

Major state-owned companies, many of which are under direct Cabinet control, enjoy strong advantages in obtaining financing, share listings and contracts. Usually headed by Communist Party officials, they can also wield strong sway over setting industry policies.

While that may not change, the NDRC statement reiterated the leadership’s concern over structural problems that have been aggravated by the global downturn and require fundamental reforms.

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