The Chinese government is preparing to introduce rules to permit private companies to acquire assets of reforming state enterprises, according to local reports. The State Economic and Trade Commission is soon to release policies to stimulate non-state purchase, rental or leasing of state assets, which could include lower taxes, lower market entry barriers and increased access to banking services. The leaders of Yunnan Province, for example, have pledged three-year tax cuts and tax exemptions for non-state companies that merge or acquire small or medium sized state enterprises.
February 06 2001