China's Ministry of Finance asked the public for recommendations and feedback on the newly drafted rules for managing the state's financial assets. The drafted rules would lodge the management of financial state-owned enterprises to the finance ministry and local finance authorities.
China's Ministry of Finance posted a notice on the public consultation of "Regulations on the Management of State-owned Financial Capital," a draft that transfers the management of state assets on the finance ministry and authorities. The state claimed that asking for feedback from the public would speed up the finalization of the new tule on state-owned financial capital management and allow for recommendations to fix decision-making arrangements.
The Party Central Committee along with the State Council manifested their intent to improve the level of legalization of funds management in the country through the new rule. The raising of public comments may be effective and addressed on or before June 9, 2020.
The move to transfer management control of China's financial assets of state-owned enterprises was said to improve the system previously overseen by other governmental bodies. The rules indicated that the state's financial assets would be concentrated on key financial sectors, institutions, and other infrastructure projects.
In other news, state-owned China Mobile is eyeing the biggest phone carrier in the Pacific Islands Digicel. Both entities were said to be under talks that raised concerns in Canberra. It also opened a new front in political tensions about Beijing's influence in the region.
The said potential deal was estimated at 900 million USD. If finalized, the report claimed that it would worsen tensions between Australia and China, especially since both countries have a trade dispute regarding the import of barley, beef, and steel into the country.
The report claimed that a senior Australian telecommunications executive revealed that a company is putting together a rival bid against China Mobile. However, the said bid would require the establishment of a federal government loan guarantee to secure the assets used.
Security sources in Canberra also said that the potential sale is shadowed by concerns about strategic implications. The Department of Foreign Affairs and Trade (DFAT) in Australia also noted that it would continue monitoring the issue. It also added that there is a need to ensure high-quality and secure telecommunication services for its Pacific partners.
The DFAT also added that the Australian government wants to push for more infrastructure investments in the Pacific, but opts for communications to be transparent, robust, and must allow low-cost alternatives for people and businesses.
