According to a China National Bureau of Statistics report,in line with diversification of the economy, China’s state-owned enterprises will withdraw from most of the industrialsectors but will maintain control over a few sectors, and thepublic sector monopoly will be broken. The report holds that the state should withdraw from 146of the 196 industrial sectors. The 146 sectors include garmentsand textile which are now facing serious overcapacity of pro-duction; food, beverages, daily consumr goods which mainlysatisfy consumption demands; household electronics itemswhich, by market regulation could become more competitive,and other manufacturing sectors which do not have a strongdemand for funds and technology. The report analysis shows thatin some departments in the public sector the existence of the According to a China National Bureau of Statistics report, in line with diversification of the economy, China’s state-owned enterprises will withdraw from most of the industrialsectors but will maintain control over a few sectors, and the public sector monopoly will be broken. The report holds that the state should withdraw from 146 of the 196 industrial sectors. The 146 sections include garmentsand textile which are now facing serious serious overcapacity of pro-duction; food, beverages, daily consumr goods which mainly satisfies the consumption demands; household electronics itemswhich, by market regulation could become more competitive, and other manufacturing sectors which do not have a strongdemand for funds and technology. The report analysis shows that in some departments in the public sector the existence of the