SHANGHAI, Jan 29: China announced on Monday new rules aimed at guaranteeing that state assets identified as key to the nation's economic security are not sold too cheaply to foreigners.

Private deals will be strictly controlled and will require approvals from the national and provincial state assets regulators, said the notice issued by the Ministry of Finance and the State-Assets Supervision and Administration Commission.

Transactions involving public bids for the sale of state-owned companies' assets must set a minimum sale price of 90 per cent of the regulators' assessment price, it said.

Once a figure for the sale or transfer of state assets to a foreign company had been determined, negotiators cannot sell more cheaply, it added.

Each sale will be assessed individually but the government warned that all state groups had to improve the deal transparency and strictly adhere to the government regulations concerning the sale of state assets.

“A company being sold must ensure that it is not violating the restrictions or prohibitions concerning the country's economic safety,” the statement said.

The announcement comes amid fears that foreigners are gaining too strong a foothold in some of the nation's industries and that regulators must protect the economy.

Meanwhile, foreign firms and governments -- eager to tap into the wealth associated with China's remarkable modernisation -- have continued to heap pressure on the nation to open its economy further.The commission was set up three years ago to ensure China's inefficient and debt-laden state companies were turned into global champions, amid concerns that Chinese firms were losing out to competition from multinationals.

In December the same commission announced that the state must maintain absolute control over seven industries deemed critical to the nation's economic security.

Military equipment, power generation and grids, oil, telecoms, coal, civil aviation and shipping were listed as the strategically important sectors where foreign participation must be limited. —AFP