There’s no systematic subsidising policy for state-owned enterprise (SOEs) in China, said Zhou Xiaochuan, the former governor of Chinese central bank.
Zhou made the statement at the Boao Forum for Asia on Wednesday in reply to critics suggesting the Chinese government has distorted the market by providing subsidies, especially for the SOEs, Xinhua News Agency reported.
While stressing that systematic subsidies didn’t exist, Zhou admits there are “left-over” areas during China’s decades of transformation into market economy. China is in fact actively stepping up reform to completely eliminate “market distorting” activities.
He mentioned electric power and natural gas industries as examples of the “left-over” areas.
Misunderstandings is another possible reason that may have misled the critics, Zhou said. He noted China is a responsible country, however the central government’s policy may not be perfectly executed during the implementation period.
It’s possible local governments may have done inappropriate things, but this can’t represent the central government’s policy intentions.
Above all, the former central bank governor said China has to accept constructive criticism and be more active in discussion of international rules.