Beijing, Nov 15 (IANS) China has decided to allow more private capital into the market to develop a mixed ownership economy.
According to a decision issued Friday by the Central Committee of the Communist Party of China (CPC), non-state-owned capital will be allowed to take equity stakes in projects featuring investment by state-owned capital, and employees of multi-ownership enterprises will be able to hold shares in their companies, Xinhua reported.
The country will vigorously develop mixed ownership to improve the basic economic system while keeping the dominant role of public ownership, with the state-owned economy playing a leading role, while encouraging, supporting and guiding the non-public sector, enhancing its vitality and creativity, according to the decision.
The decision called for cross shareholding of state capital, collectively owned capital and non-public capital to maintain and increase the value of stated assets and achieve common development of various ownerships.
The CPC Central Committee decided to support the development of the private economy, and stimulate its vitality and creativity, according to an explanation of the decision, made by Xi Jinping, general secretary of the CPC Central Committee.
Both public and non-public sectors of the economy are important components of the socialist market economy and significant bases for economic and social development, he said.
Property rights in the public sector will be protected, so as those of the non-public sector, Xi said.
The decision also called for further improvement in the management of state-owned assets.
Priority will be given to supervision of state-owned capital and qualified state-owned enterprises (SOEs) will be reorganised to establish state-owned assets investment companies, according to the decision.
These investment companies will serve national strategic goals and invest in key industries related to national security and the lifelines of national economy, said the decision.
The investment will mainly go to the public service and environment protection sectors, as well as prospective and strategic industries, it said.
Part of state-owned capital will be transferred to the social security fund. Thirty percent of the gains of the country’s state-owned capital will have to be handed back to the government by 2020.
At present, the proportion ranges from zero to 15 percent. The money will be used to improve people’s livelihood, said the decision.
The decision also called for improvement on the property rights system with equal treatment on both public and non-public properties. It also ruled that property rights of various types should be protected in accordance with the law.
The lengthy policy document – officially named ‘A decision on major issues concerning comprehensive and far-reaching reforms’ – was approved in the third plenary session of the 18th CPC Central Committee, a four-day key meeting which ended in Beijing Tuesday.