Official: Energy law will allow private participation
23 November 2007
Private-sector involvement in the energy sector will be encouraged under China's new energy law, although the state will retain control in areas where national security is at stake, according to an official involved in writing the legislation. "We have instilled a 'market basis' legal principle in the draft and to achieve this, energy assets must not be entirely state-owned," said Ye Rongsi, deputy head of the law's drafting team. Ye added that provisions will be made for fair competition, which will offer protection to the many private firms that face being squeezed out by the state-owned giants that control most of the fuel supply, the South China Morning Post reported. However, the issue of whether to set up an energy ministry to oversee these developments - a move that was tipped by state media last week - won't be answered until after the National People's Congress meeting in March. At present, jurisdiction is divided between several bodies.