China to keep key sectors of the economy under control

Mumbai: China will have "absolute ability to control" key sectors of the economy, including oil and telecommunication, even as the country opens up to market competition, state television said.

"The state will retain absolute ability to control seven key sectors that concern national security and economic viability – military industry, power and the power grid, petrochemicals and oil, telecommunications, coal, civil aviation and shipping," the report said.

China''s Assets Supervision and Administration Commission (SASAC) has started a restructuring process of the large government-owned firms, aiming to halve the number of firms that have wider control over the economy by the year 2010.

The government aims to have 30 to 50 big enterprise groups that that are internationally competitive, the report added.

Beijing plans to keep a tight hold on its markets even as it works to build internationally competitive companies, CCTV report on the guidelines for the shake-up said.

The report did not provide further details on the type of control the government plans to exercise.

The report said the restructuring is aimed at streamlining and improving the efficiency of China''s state-owned enterprises that have very complicated corporate structures.