Latest News:  
Beijing   Overcast/Moderate rain    9 / 12 ℃  City Forecast

English>>China Business

New policy to curb incomes in monopolized sectors


08:25, October 23, 2012

BEIJING, Oct. 22 (Xinhua) -- A forthcoming income distribution scheme will regulate inappropriately high earnings in monopolized sectors in a bid to address income disparities, experts have said.

Aside from improving incomes for low-income groups, capping high wages in state-run sectors will become a focus in the reforms, Su Hainan, a former researcher with the Ministry of Human Resources and Social Security (MOHRSS), said in an interview.

A State Council meeting presided over by Premier Wen Jiabao last week said the government will formulate a general income distribution reform scheme in the fourth quarter of year. The plan has been in the works since 2004.

Su said the scheme will break monopolies by opening state-run sectors to private investors and regulate the sectors by levying higher tax rates on state-owned enterprises (SOEs) for using public resources.

SOEs should give more of their profits to the state and the high salaries of senior managers in some SOEs should be controlled, he said.

Li Shi, an expert with the National Development and Reform Commission, the body responsible for drafting the scheme, said it is important for the government to set up an assessment system to decide income levels in SOEs since their monopoly status can't be easily changed.

Unfair income distribution has also been seen by many economists as a major obstacle in deepening the country's economic reform and growth mode transformation.

Su said the scheme will help to drive the country's growth in the mid- and long-term, adding that domestic consumption will be expanded if the status of low-income earners is improved.

State-run sectors have become a major target of public complaints in recent years. A MOHRSS report showed that some SOE managers earned thousands of times more than migrant workers last year, signifying a widening income gap.

News we recommend:
Let the train, take the strain Personal care market to keep growing An Apple a day isn't keeping critics away
Global companies expand rapidly in China Shanghai's 'other' market China's tourism industry reaps golden harvest
Commentary:Asking the right questions  More Investment, More Woes? All that glitters is gold


Leave your comment0 comments

  1. Name


Selections for you

  1. Navy seaplane in rescue training

  2. Border guards on patrol duty

  3. Indians dancing the night away

  4. Toys, gifts show held in Hong Kong

  5. Craftmanship of artisans in China's 'Porcelain Capital'

  6. Figures indicate a further slowdown

  7. Sitting down for music and more

  8. Do you still believe in love?

Most Popular


  1. China determined to be new kind of great power
  2. Evasions won't hide reality of Diaoyu theft
  3. U.S. presidential debate finale to draw attention
  4. Opportunities abound for China shale gas
  5. Canton Fair foretells grim trade outlook
  6. Officials cross line with sorghum plan
  7. Investment not enough for banks
  8. Turkey makes case for buffer zone in Syria
  9. China dominate second US presidential debate
  10. Theft of Diaoyu Islands won't be concealed

What’s happening in China

Let us rest in peace

  1. Short-term service helps ease burdens
  2. Official criticized for appearing on dating show
  3. Mo Yan's hometown to hail Nobel success
  4. 3,578 CPC officials busted for taking bribes
  5. China bans profiteering from religious activity