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Reform of SOEs Advances
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State-owned enterprises (SOEs) in China have stepped out of the mire of the past and the reform of the nation's SOEs is set to deepen, Vice-Premier Wu Bangguo said Monday.

With the policies set by central government and the unremitting efforts of all the relevant parties, SOEs have experienced great changes, Wu told a seminar on China's economy and trade.

SOEs have adhered to the establishment of modern enterprise systems, while large-sized ones have been successfully listed on overseas markets, he said.

Important policies and measures, including bankruptcy and debt-equity exchanges, have been adopted to help a number of enterprises out of difficulty.

With a market-orientated mindset, more investment has been injected into the technical upgrading of key industries, enterprises and products.

Such upgrading has both improved techniques and the equipment of many large-sized enterprises, enhanced the quality of their products and increased the profit levels of many.

The management of SOEs has been improved and the system for encouraging the good and curbing the bad, has been made more effective.

The country, while deepening the reform of SOEs, has been speeding up the pace of the establishment of a social security system and re-employment programs, all of which have helped maintain social stability.

Wu said in the past the main focus was on helping SOEs out of difficulty in line with the market economy.

In the coming years the emphasis should be on sustainable development of SOEs.

The nation's guidelines for reform and development of SOEs, which are clear and have proved to be effective after implementation, should be carried out determinedly, Wu said.

He said the country should try to develop a core of large companies that are internationally competitive.

Such companies should take the lead in reform and development by establishing, at the outset, a well-run and modern enterprise system, said Wu.

The restructuring of SOEs must continue, while leading technology should be employed to upgrade traditional industries, he added.

Whilst reforms were under way, every consideration needs to be given to employees and necessary arrangements made for those whose companies go bankrupt.

(China Daily December 17, 2002)

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