Chinese state companies will dump some costly social burdens by 2018
Chinese government-run enterprises are on the verge of getting rid of some costly social functions such as water, heating as well as power supplies by 2018. That’s what the state asset regulator told on Monday. It’s going to be part of broader efforts aimed at rejuvenating its lumbering state sector.
Beijing has decided to make its state companies more competitive and stronger. In a reform plan issued the previous year the government stated that it would give birth to multi-channel funding as well as appropriate cost-sharing mechanisms to assist them in relinquishing their costly social burdens.
The vast majority of Chinese giant state companies left government departments, while many have retained the government's original social as well as administrative responsibilities, providing not only power and heat to local communities, but also retirement homes, schools, police services as well as pensions.