China will require most of its biggest government-owned enterprises to pay larger dividends to the state next year to help rebalance the economy and funnel more money into underfunded public services.
Politicians and economists around the world see an increase in Chinese domestic consumption as a way of addressing global trade and economic imbalances, and providing new markets at a time of stuttering growth in developed economies.
According to a directive from the Ministry of Finance, China’s largest petrochemical, tobacco, telecoms and power generation companies will have to pay 15 per cent of their post-tax profits to the government, up from the current dividend of 10 per cent.