CHINA is poised to embark on a fresh round of industrial consolidation as part of a sweeping plan to reinvigorate the country’s inefficient State-owned enterprises and raise the global competitiveness of domestic industry.

    The initiative, dubbed “Made in China 2025,” focuses on promoting key sectors, led by railways and nuclear power plant construction, in offshore markets, in the government’s latest move to create leading international giants.

    “Without size and strength internationalization is fairly difficult,” said Li Dongsheng, chief executive of Chinese mobile telephone and television set giant TCL Corp, explaining the rationale behind consolidation.

    A restructuring plan, expected to be released before the end of March, will address issues ranging from the establishment asset management companies to oversee State shareholding, to the introduction of non-State investment and performance-based compensation schemes at government-controlled firms, experts say.

    Improving the efficiency at State-owned enterprises (SOEs), which dominate crucial sectors of China’s economy, is critical as the country struggles to maintain the breakneck pace of growth it has delivered for two decades.

    Premier Li Keqiang outlined the “2025” strategy, which also includes promoting machinery and communications equipment, automobiles, aircraft and electronics, in his address to the annual gathering of China’s parliament, which concludes later this week.

    The plan is part of a broader push by President Xi Jinping to raise the performance of China’s lumbering State sector.

    The government is seeking to strengthen its control of lifeline industries, including energy, transportation and national security enterprises, while relaxing grips on non-essential sectors through stake sales and stock market listings. (SD-Agencies)