China is encouraging foreign............>

CHINA PRESS: China is encouraging foreign companies to participate in the reform

of state-owned enterprises in an attempt to transform SOEs into mix-ownership

entities, which would be beneficial for SOEs and China's economic restructuring,

the Securities Times said in a front-page commentary Thursday. There should be

three priorities for this approach, the newspaper said. The reform of SOEs needs

to use high-quality foreign investment which can provide advanced technology and

 management techniques to SOEs. SOEs in economically strategic industries should

maintain their dominant status in share ownership, but important high-tech and

other companies could be controlled by private investment and foreign investors

could own more or all shares. China could direct foreign investment mainly

toward high-tech, high-end manufacturing and the service sector, the newspaper

said, noting that in previous experience around 70% of foreign capital was

invested in these sectors. (Securities Times)