BEIJING: Chinese lawmakers are mulling a law to prevent state-owned assets being sold too cheaply, state press reported Sunday, legislation that is likely to tighten Beijing’s control over business.
The draft law details procedures for the restructuring of state assets, including accurate audits before firms are merged or sold, a local news agency reported. "The state assets should be transferred at reasonable prices," it said.
China has moved to tighten rules involving the sale of its state-owned companies amid criticism that it has been selling off valuable state assets, especially to foreigners at firebrand prices.
The current draft law stipulates that the government should set up a budgetary system that would manage the expected revenues of state-owned enterprises (SOEs) in order to better ascertain their value, the news agency reported.
Merger, restructuring and bankruptcy procedures should include consultation with China’s communist party-controlled work unions and even employees, it said.
Officials caught embezzling, transferring assets at unreasonably low prices or causing economic loss to the government will be punished, it said.
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