China's government has laid out plans to promote industrial mergers and acquisitions in a bid to accelerate economic restructuring and increase industrial competitiveness.

The sectors involved include automobiles, steel, cement, machinery, rare earths and aluminum, said a statement from the State Council, or Cabinet, on its website, www.gov.cn, Monday.

Some industries that face replicated construction, low concentration, weak self-innovation and competitiveness needed consolidation through mergers and acquisitions, the statement said.

The government would scrap rules that restricted cross-regional mergers and acquisitions, the statement said. Local governments could sign agreements on dividing revenues and taxes of companies formed through cross-regional mergers and acquisitions, said the statement.

Further, the government would encourage private investment in authorized sectors and allow private capital to take greater stakeholdings in companies, the statement said.

The government would also step up reform of monopolistic industries and promote the entry of private capital through mergers and acquisitions, the statement said.

Local governments and commercial banks were encouraged to give financial support for such mergers and acquisitions, the statement said.

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