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Government and Policy

China: State firms to hand over more profits

(Agencies)
Updated: 2011-02-22 11:44
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BEIJING?- A government spokesman says China's big state-owned companies will be required to hand over more profits to the national treasury as Beijing boosts development of smaller and private companies.

The deputy chairman of the Cabinet commission that oversees China's biggest banks and other companies said Tuesday the move is part of efforts to make state industry more efficient and market-oriented.

China's major state companies currently turn over 10 to 15 percent of their profits to the government. That has prompted public complaints that banks, oil producers and other state companies that benefit from government support are failing to share enough of their profits from China's boom.

The?country's latest five-year economic plan calls for reducing support to major state companies and encouraging smaller businesses and service industries.

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