Chinese courts have been told to overcome local protectionism and go through strict legal procedures to prevent losses of state assets in the merger and acquisition of state-owned enterprises.
In a set of directives issued by the Supreme People's Court (SPC) on Tuesday, courts are told to overcome the influence of industries and government bodies to protect the interests of the public during enterprise reshuffles.
To protect state assets, the SPC has promised to clamp down on bribe-taking, power abuse, misappropriation of public funds and illegal business dealings.
The private sector is welcome to participate in the merger and acquisition of state-owned enterprises, according to the directives.
The SPC called for efforts to properly settle non-governmental financing disputes.
It vowed to crack down on financial crimes in the private sector including high-interest lending, speculation and illegal fundraising.
It also urged courts to protect employees' legitimate rights and interests in the merger and acquisition of enterprises.