For the first time, Beijing will utilize a competitive hiring process to select general managers for four large state-owned enterprises (SOEs). General managers have traditionally been appointed by the government.

The change is part of China's in-depth reforms of SOEs, according to the Beijing State Assets Supervision and Administration Commission (SASAC).

The posts up for grabs are with the Beijing No. 1 Commerce Group, the Beijing Urban Construction Company, the Beijing Jingyi Stock Company and the Beijing Public Transportation Corporation.

Competition will begin later this month.

People within the enterprises are encouraged to compete, said SASAC press officer Hu Sicong, "because they know better the conditions of the companies."

But it will take time for applications for top jobs to be accepted from outside SOEs.

The competitive process includes submission of a personal statement, appraisal by coworkers, recommendation by enterprises and an independent appraisal by a committee consisting of local SASAC authorities, other experts and the Organization Department of the Beijing Municipal Committee of the Communist Party of China.

Independent appraisal and assessments by the enterprises' boards of directors will each account for 40 percent of the final decision, while coworkers will contribute 20 percent.

SASAC will evaluate the new general managers annually.

The former general managers of the four enterprises have retired or were moved to other posts, sources with the commission said.

The deputy manager at the Beijing Metro Operation Company and the vice president of the Beijing Municipal Institute of Survey and Design will also be chosen through competition.

More SOEs are expected to be involved in the reform in the second half of this year.

SASAC administers a total of 92 state-owned enterprises and public institutions. Only chairmen of the boards of 12 large SOEs were appointed by the Organization Department of the Beijing Municipal Committee of the Communist Party of China. The rest are handled by SASAC.

(China Daily June 3, 2004)