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Does it run against privatization policies when state-owned enterprises continue to make capital outlays in or participate in investment in the private enterprises?

  • Release Department:Department of Special Fund Budget

State-owned enterprises are usually privatized by the sale of shares held by the government, and this process is unconnected with reinvestment by the enterprise in question. Furthermore, reinvestment increasing an enterprise's revenue will facilitate the successful privatization of that enterprise. When such a state-owned enterprise is privatized, the shares it holds due to reinvestment are simultaneously privatized. As a consequence, there is no contradiction between reinvestment in private enterprises and the goal of privatization.