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China's steel industry urges tighter controls on foreign investment
Beijing, Aug 2, 2006 China's steel industry wants tighter controls on foreign investment, state media said Wednesday, amid growing concerns a more protectionist mood may be taking hold in Asia's second-largest economy. It should be made harder for foreign investors to buy shares in domestic steel firms, especially the large ones, said Luo Bingsheng, vice chairman of the China Iron and Steel Association. "The sector should be controlled by Chinese state-owned and privately owned steelmakers, instead of foreigners, as it is one of the country's most important basic industries," Luo said in a China Daily report. A national steel industry policy launched last year already bans foreign investors from having a controlling stake in Chinese steelmakers. The report came just two days after US Undersecretary of Commerce Franklin Lavin warned of emerging signs that China could be adopting a less welcoming attitude to foreign investment in certain sectors. The reasons are complacency caused by years of fast growth, combined with a weakened impetus to reform as China has gradually implemented most of its concessions made to gain entry into the World Trade Organization, Lavin said. The debate over the future thrust of China's reform coincides with a period of unprecedented change in the global steel industry which is likely to also affect China. Mittal Steel's takeover of European peer Arcelor, creating an uncontested steel giant, poses a great challenge for China, Luo said in Wednesday's China Daily. Against the backdrop of current international trends, China's 800 mostly small steelmakers face the urgent task of consolidating in order create globally competitive players, according to Luo. "The current consolidation pace is too slow. Regional barriers should be broken down," he said. One example of consolidation that did not cross regional barriers was announced Tuesday in the form of a link-up between Jinan Iron and Steel and Laiwu Steel, both based in east China's Shandong province. The reorganization is likely to attract keen interest abroad since Arcelor said in February it had won initial approval to buy a 38.41-percent stake in Laiwu Steel for 2.09 billion yuan (260 million dollars). Community Email This Article Comment On This Article Related Links China News from SinoDaily.com
Taiwan cautions against reported Chinese attempt to control cable news network
Taipei, Aug 1, 2006 Taiwanese authorities said Tuesday they would not tolerate any attempt by rival China to control a television station here via a Hong Kong business. |
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