Growing Moves in China to Restructure Companies and Foster New Industries

Abstract

One of the main aims of China's 12th Five-Year Program, which covers the period 2011-15, is to make Chinese industry more competitive. In order to achieve this, six key sectors have been designated for merger and restructuring, while seven have been designated for the creation of strategic new industries. These sectors can expect to be given preferential access to market funding. A government-backed investment company, China Reform Holdings Corporation, has been established to restructure China's central state-owned enterprises. The next step will be for private-sector capital and foreign capital to be harnessed to the goal of making Chinese industry more competitive.

Keywords: China, corporate restructuring, strategic new industries, SOE Reform, China Reform Holdings Corporation, foreign direct investment, QFII

JEL Classification: G31, G32, G34, G38, L52, L60