The Chinese Government supports the participation of foreign capital in the reform of state-owned enterprises (SOEs) in the country, Chinese state-run broadcaster China Radio International reported.

Shen Danyang, spokesperson of the Chinese Ministry of Commerce, said on Wednesday foreign capital might be able to do so via mergers and acquisitions.

Foreign capital could drive “transformation and upgrading” of the SOEs, as well as enhance their international competitiveness, he was quoted saying.

The scale and proportion of mergers and acquisitions by foreign capital in China were “still far lower” than at international level, Mr Shen added.

China would also make better use of foreign direct investment to the country this year,in high-tech industries, as well as in the environmental protection and services sectors, the report added.