The government will take absolute control of seven of China's industries. However, this will not prevent foreign-funded and private enterprises from entering these sectors, said Shao Ning, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council.

According to the new policy, the state will have absolute control over some key sectors and areas related to national security and the lifeline of the national economy. These sectors are the arms industry, state grid and power, the petroleum and petrochemical, telecommunications, coal, civil aviation, and shipping industries.

The government will have sole proprietorship or absolute control over these industries. It will also have absolute control over the subsidiaries of the central corporations. However, the government will continue to support reform and private investment in downstream products in the petroleum and petrochemical industry as well as the telecommunications service industry. This will promote diversity in investment and property rights.

By People's Daily Online