China is planning to step up auditing of overseas state-owned assets and strengthen supervision of state-owned capital.
The establishment, implementation, and performance of international operations, such as overseas investment, joint ventures, and joint capital, will receive the most scrutiny.
The plan is aimed at helping boost the competitiveness of state-owned businesses and minimize business risks.
Faced with a highly competitive international market and different management styles, China’s state-owned enterprises need to better recognize and control risks.
Data shows that the total assets of China’s state-owned enterprises hit five trillion yuan (724 billion U.S. dollars) in 2016, including demonstration projects, the construction of high-speed rail and electric power and communications infrastructure, and equipment manufacturing.
The new plan will help overseas state-owned assets preserve and increase business value, according to Li Jin, chief researcher of the China Enterprise Reform and Development Society.
(Source: People’s Daily)
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