SOE reform to open door to foreign capital

Mixed ownership will provide an opportunity for overseas enterprises to enter key industries blocked to private investors China has been pressing ahead with plans to expand mixed ownership of State-owned enterprises to boost economic efficiency. This is expected to produce unprecedented opportunities for foreign companies.

Last year, the government identified two SOEs to implement a pilot ownership reform: China National Building Material Group and China National Pharmaceutical Group Corp.

In the long run, roughly 50 percent of China's SOEs could be opened for mixed ownership, according to Zhou Fangsheng, deputy director of the China Enterprise Reform and Development Society, a body under the State Council's State-owned Assets Supervision and Administration Commission.