SOEs get no special treatment, says official
By Wang Yanlin |
November 2, 2010, Tuesday
|
Print Edition
Print Edition
A SENIOR trade official has dismissed as "entirely groundless" allegations that Chinese state-owned enterprises receive subsidies to invest overseas.
Vice Minister of Commerce Chen Jian refuted the claims at a Beijing press conference yesterday, in response to a question on China's outbound investment and cooperation. "Some people assume that China provides subsidies for state-owned enterprises, or SOEs. They reach that conclusion without any serious investigation," Chen said.
"In fact, Chinese SOEs operate independently and are responsible for their own profits or losses. They have been doing so ever since the country adopted its socialist market economy."
He said overseas investments by Chinese firms are influenced only by market forces.
He added China will continue to encourage outward investment over the next five years, despite some unfair treatment towards Chinese companies. "Such unfair treatment is simply trade and investment protectionism," Chen said, without naming any countries.
In August, 52 US Congressmen attempted to block China's first investment in the American steel industry - a joint venture between China's Anshan Iron and Steel Group and Mississippi-based Steel Development Co. The deal was finally sealed in September.
Chen also said that the appreciation of yuan is beneficial for Chinese enterprises investing overseas but negatively affects the country's exporters.
China will try to minimize the negative effects of the rise of yuan on its exports while maximizing the positive effects on the country's outbound investment, he said.
"For the sectors whose exports have been hampered by the appreciation of yuan, China will accelerate their restructuring," he said.
In China's 12th Five-Year Plan which starts next year, policymakers require Chinese outbound foreign investment to produce more value for the overall economy, and that investment should increase significantly in both scale and quality.
This five-year period will be crucial for China's "go global" strategy as Chinese companies have grown to a level that demands global expansion, and they are now more capable of achieving this, Chen said.
More than 12,000 Chinese companies have established branches in 177 countries, with assets of more than US$1 trillion by the end of last year, the commerce ministry said.
Vice Minister of Commerce Chen Jian refuted the claims at a Beijing press conference yesterday, in response to a question on China's outbound investment and cooperation. "Some people assume that China provides subsidies for state-owned enterprises, or SOEs. They reach that conclusion without any serious investigation," Chen said.
"In fact, Chinese SOEs operate independently and are responsible for their own profits or losses. They have been doing so ever since the country adopted its socialist market economy."
He said overseas investments by Chinese firms are influenced only by market forces.
He added China will continue to encourage outward investment over the next five years, despite some unfair treatment towards Chinese companies. "Such unfair treatment is simply trade and investment protectionism," Chen said, without naming any countries.
In August, 52 US Congressmen attempted to block China's first investment in the American steel industry - a joint venture between China's Anshan Iron and Steel Group and Mississippi-based Steel Development Co. The deal was finally sealed in September.
Chen also said that the appreciation of yuan is beneficial for Chinese enterprises investing overseas but negatively affects the country's exporters.
China will try to minimize the negative effects of the rise of yuan on its exports while maximizing the positive effects on the country's outbound investment, he said.
"For the sectors whose exports have been hampered by the appreciation of yuan, China will accelerate their restructuring," he said.
In China's 12th Five-Year Plan which starts next year, policymakers require Chinese outbound foreign investment to produce more value for the overall economy, and that investment should increase significantly in both scale and quality.
This five-year period will be crucial for China's "go global" strategy as Chinese companies have grown to a level that demands global expansion, and they are now more capable of achieving this, Chen said.
More than 12,000 Chinese companies have established branches in 177 countries, with assets of more than US$1 trillion by the end of last year, the commerce ministry said.
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