Economy· Govt

Former governor of Chinese central bank confirms SOEs are not given systematic subsidies

minutes 2019/03/28 07:27:25
China's News, China Financial News, SOEs,government, central banks

Mar 28, 2019 (China Knowledge) - Zhou Xiaochuan, former governor of Chinese central bank said that there is no systematic subsidising policy for state-owned enterprise (SOEs) in China.

The statement was made at the Boao Forum for Asia on Wednesday, 27 March 2019. It was in response to critics who pointed out that the Chinese market was distorted when the Chinese government provides subsidies, especially for the SOEs.

Although Zhou emphasised that systematic subsidies were not practised anymore, he admits that there are some “left-over” industries that are still affected by “market distorting” activities. Electric power and natural gas industries are examples of the “left-over”.

Zhou proceeds to explain that critics made such comments is also due to misunderstandings. He said that China is a responsible country. However, the country may not have perfectly executed its central government’s policy during the implementation period. While some actions executed by local governments were inappropriate, that does not represent the central government’s policy intentions.

Zhou concluded by saying that China has to accept constructive criticism and be more proactive in international rules discussion.

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