Beijing has largely left the task of restructuring to state-owned enterprises to manage themselves, but the government will now begin driving the process, Wang Huisheng, president and chief executive of the largest state-owned industrial holding company, told the Financial Times on Wednesday.
“One year has already gone by and we need to accelerate [the consolidation process],” said Mr Wang, who is head of the State Development and Investment Corp. “SDIC will be a major platform for this restructuring process by acquiring [state-owned enterprises] that add to our main business lines and selling others into the market.”
Mr Wang singled out the energy sector, in which SDIC is a big investor, saying he intended to consolidate upstream coal mining operations with transport links, port facilities and downstream power plants to create integrated energy producers that are less vulnerable to soaring coal prices.
While state ownership would decrease in some sectors, in others, such as energy and natural resources, the state would increase control, Mr Wang said.
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