Q: Many people believe that the root cause of the slow
progress of SOE reform is the backward State assets management
system. Is this true? China is now trying to intensify the reform
of State assets management. What is the goal of the
reform?
A: Just as you mentioned, SOEs still have a long way to go to
establish a modern corporate system. One root problem is the
retardant reform of the State assets management system.
For example, the State's supervisory role as owner isn't being
fulfilled. And too many departments manage State assets. The
government's function as administrator of public affairs and its
function as an investor have not been clearly defined. The
management of State assets is scattered among several government
departments, resulting in disintegration of rights, duties and
responsibilities.
The aim of the State assets management reform is to improve the
performance of SOEs, adjust national economic distribution and
structure and guarantee increase in the value of State assets.
In order to achieve such a goal, China has decided to set up
State assets supervision agencies within the central government and
local governments at provincial and prefecture levels and decided
on the following four reform principles:
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First, separating the government's function as public affairs
administrator from its function as owner of State assets. As
administrator of public affairs, the government's major functions
are to regulate economy, supervise market, manage social affairs
and provide public services. State assets supervision agencies will
shoulder the responsibility of supervising and managing State
assets.
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Second, separating government from enterprise, and ownership from
management. State assets supervision agencies are authorized to
supervise the management of State assets, protect the legal rights
and interests of owners. It should also protect the enterprises'
legal l rights and interests as market players. The agencies,
however, are not allowed to interfere in enterprises' production
and management activities
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Third, integrating rights, duties and responsibilities and
combining management of assets, personnel and major operations.
This is a principle in forming State assets supervision agencies,
as well as an important part of the state assets management
reform.
Fourth, under the precondition of State ownership, the central
and local governments will represent the state to supervise the
management of State assets.
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It is expected China will set up a relatively mature mechanism for
the management, supervision and operation of State assets by
2010.
The Intermediate People's Court of
Changchun City, Jilin Province holds an open trial of Qi Kuifan,
former Deputy Manager of the Changchun Municipal Grain and Oil
Supply Corp., for defalcation and bribery. The government lays
stress on cracking down on on-the-job crimes.
