China is poised to embark on a fresh round of industrial consolidation, as part of a sweeping plan to reinvigorate the country's inefficient state-owned enterprises and raise the global competitiveness of domestic industry.
The initiative, dubbed "Made in China 2025", focuses on promoting key sectors, led by railways and nuclear power plant construction, in offshore markets, in Beijing's latest move to create leading international giants.
"Without size and strength internationalization is fairly difficult," said Li Dongsheng, chief executive of Chinese mobile telephone and television set giant TCL, explaining the rationale behind consolidation.
A restructuring plan, expected to be released before the end of March, will address issues ranging from the establishment of asset management companies to oversee state shareholding, to the introduction of non-state investment and performance-based compensation schemes at government-controlled firms, experts say.
Improving the efficiency at state-owned enterprises (SOEs), which dominate crucial sectors of China's economy, is critical as the country struggles to maintain the breakneck pace of growth it has delivered for two decades.