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State capital to quit catering businesses in Beijing
( 2001-07-30 15:34 ) (8 )

State capital will be withdrawn from Beijing's commercial enterprises, especially small catering businesses, so that fund can be concentrated on the establishment of 18 large commercial enterprise groups in five years.

According to officials with the Beijing Municipal Commerce Commission, state capital would withdraw completely from small service businesses, such as those running bathrooms, barbershops, repair shops, restaurants, inns, laundries and photo studios.

For certain businesses with a fairly big amount of assets, the withdrawal of state capital will be conducted step by step. For big and mid-sized retail and wholesale businesses with promising prospects, the government's stake should not exceed 50 percent.

Observers say the move will help make better use of state fund in major industries and improve the performance of the catering sector and even the whole service trade.

It is of special significance on the eve of China's entry into the World Trade Organization, an event which means China will have to open its service trade so that investors, Chinese or foreign, can compete on an equal footing.