China to tackle monopolies, introduce competition

China will promote market-oriented reform in state-owned enterprises by further breaking monopolies and introducing competition, according to a document issued Friday after a key meeting of the Communist Party of China (CPC).

The functions of different state-owned enterprises will be clearly defined, Xinhua cited the document as saying.

More assets will be channelled into public welfare state-owned enterprises. Those in natural monopoly sectors, such as energy and minerals among others, will separate government functions from enterprise management, promote franchises and government monitoring of them will be improved, according to the document.

Administrative monopolies will be further broken and competitive business will be introduced, the railway sector being one example. This will mean resources are better allocated, it added.

Information disclosure, such as financial budgets of enterprises, will be further explored.

The country will promote checks and balances in state-owned enterprises' corporate governance, set up professional manager system so outside talent can be hired and introduce more competition among management, the document said.

Salaries and business spending among management in the enterprises will be regulated.