China to in­ten­sify au­dit­ing of state firms’ overseas in­vest­ment

China's Foreign Trade (English) - - Briefing -

China’s cen­tral au­thor­i­ties made pub­lic a plan re­cently to step up au­dit­ing of overseas in­vest­ment by state-owned en­ter­prises (SOES) and strengthen su­per­vi­sion of state-owned cap­i­tal.

The plan, jointly is­sued by the Gen­eral Of­fice of the Com­mu­nist Party of China Cen­tral Com­mit­tee and the Gen­eral Of­fice of the State Coun­cil, is aimed at help­ing boost the vi­tal­ity, com­pet­i­tive­ness and risk-re­sis­tance of state-owned busi­nesses.

The coun­try will en­hance su­per­vi­sion over state as­sets through strict au­dits of SOES, their overseas in­vest­ment and state-owned cap­i­tal as well as per­for­mance assess­ment of state com­pany man­agers, ac­cord­ing to the plan posted on the govern­ment web­site.

The coun­try will also pro­mote progress in SOE re­forms, pro­tect the safety of state as­sets and en­hance cap­i­tal re­turns, it said.

As of the end of 2016, to­tal as­sets of China’s SOES hit RMB 131.72 tril­lion (ap­prox­i­mately USD 19.1 tril­lion at the time of print­ing), ac­cord­ing to sta­tis­tics from the Min­istry of Fi­nance.

and thus off­load some of Bei­jing’s “non-cap­i­tal func­tions”. It will also cre­ate a new model of op­ti­mized de­vel­op­ment in densely pop­u­lated ar­eas and re­struc­ture the ur­ban lay­out of the Bei­jing-tian­jin-he­bei re­gion.

The Xion­gan New Area, ac­cord­ing to the an­nounce­ment, is a his­toric and strate­gic choice, and be­ing sim­i­lar to the Shen­zhen Spe­cial Eco­nomic Zone in South China’s Guang­dong prov­ince and the Shang­hai Pudong New Area in East China, it will serve as an eco­nomic en­gine and ad­vance the co­or­di­nated de­vel­op­ment of the Bei­jing-tian­jin-he­bei re­gion.

In fact, the Xion­gan New Area has greater po­ten­tial than the Shen­zhen and Shang­hai zones. It will start as an 100 sq km zone, and in the long run cover 2,000 sq km - an area larger than that of the Shen­zhen SEZ’S 1,900 sq km and the Pudong zone’s 1,700 sq km. And be­ing close to Bei­jing, the new eco­nomic zone will en­joy in­com­pa­ra­ble ge­o­graph­i­cal ad­van­tages.

41 Cross-border E- com­merce Re­tail Im­port Im­prov­ing the Su­per­vi­sion for More Healthy De­vel­op­ment 44 The “Pet Econ­omy” is Emerg­ing 46 “She-econ­omy” Con­trib­utes the Global Growth

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.