Seems to me that reforms are a power consolidation that picks winners and losers (like Putin did) and creates an shrunken oligargy loyal to Xi Jinping. I would therefore expect in the long run Chinese GDP per capita to converge to Russia's not South Korea's or Japan's.
From Bloomberg. (Thanks Michael)
President Xi Jinping’s overhaul of China’s energy industry took a step forward as PetroChina Co. announced plans to unload $2.4 billion in Central Asian pipelines.
The country’s biggest energy producer will sell a 50 percent stake in Trans-Asia Gas Pipeline Co. to a unit of China Reform Holdings Corp., another state-owned company that acts as an investment firm charged with revamping government-run entities. Trans-Asia Gas Pipeline operates a 1,830 kilometer (1,140 mile) system that carries gas through Turkmenistan, Uzbekistan and Kazakhstan to China’s far western province Xinjiang.
China Reform was set up in 2010 by China’s State-owned Assets Supervision and Administration Commission, an arm of the cabinet that controls the biggest government enterprises. It agreed last year to help restructure the coal-to-chemical business of Datang International Power Generation Co., bought 6 percent in China Tower Corp. earlier this year and has taken over some smaller state enterprises.
“We think this is a clear signal that China is more likely to establish a ‘National Gas Pipeline Entity’ to administer all the backbone pipeline assets,” Morgan Stanley analysts including Andy Meng said in a research report Thursday.
From Bloomberg. (Thanks Michael)
President Xi Jinping’s overhaul of China’s energy industry took a step forward as PetroChina Co. announced plans to unload $2.4 billion in Central Asian pipelines.
The country’s biggest energy producer will sell a 50 percent stake in Trans-Asia Gas Pipeline Co. to a unit of China Reform Holdings Corp., another state-owned company that acts as an investment firm charged with revamping government-run entities. Trans-Asia Gas Pipeline operates a 1,830 kilometer (1,140 mile) system that carries gas through Turkmenistan, Uzbekistan and Kazakhstan to China’s far western province Xinjiang.
China Reform was set up in 2010 by China’s State-owned Assets Supervision and Administration Commission, an arm of the cabinet that controls the biggest government enterprises. It agreed last year to help restructure the coal-to-chemical business of Datang International Power Generation Co., bought 6 percent in China Tower Corp. earlier this year and has taken over some smaller state enterprises.
“We think this is a clear signal that China is more likely to establish a ‘National Gas Pipeline Entity’ to administer all the backbone pipeline assets,” Morgan Stanley analysts including Andy Meng said in a research report Thursday.
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