State-Owned Enterprises Make Good Performance

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Last updated at: (Beijing Time) Wednesday, January 30, 2002

State-Owned Enterprises Make Good Performance

State-owned enterprises (SOEs) directly under central government control reported a sound performance last year despite the difficult international economic situation.
Last year, 173 state-owned enterprises generated 186.7 billion yuan (US$22.5 billion) in profits.

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Economic Achievements Remarkable

At an annual meeting of the Central Enterprise Work Committee of the Communist Party of China Central Committee Tuesday in Beijing, Vice Premier Wu Bangguo said the SOEs had contributed to the steady and healthy growth of the national economy.

Last year, 173 state-owned enterprises generated 186.7 billion yuan (US$22.5 billion) in profits.

A total of 64 industrial firms chalked up profits of 110.4 billion yuan (US$13.3 billion), representing 47 percent of the entire profits realized by the country's SOEs.

Contribution to Society

Apart form economic achievements, these businesses have also effectively curbed corruption and resolved some of the deep-seated problems that sparked corruption, Wu said.

They should also contribute to social stability by paying social insurance premiums for the employees, and helping workers when their enterprises merge or go bankrupt, he said.

SOE Reform Blazes Trail for Successful Enterprise Operation

"The 20-odd-year reform of Chinese SOEs has fully proved that as long as modern enterprises with "distinct property rights, clearly-defined rights and responsibilities, the separation of government functions from enterprise management and scientific management" as the main content can be set up, it is entirely possible to run SOEs well".

Wei Jiafu, president of the China Ocean-Shipping (Group) Company, made the remark on May 29, 2001 on the platform of Harvard University, giving US specialists and scholars a lesson on the reform of Chinese State-owned enterprises.

This report was written by Ting Gang, our staff reporter stationed in the United Nations, recording the lectures given by the President of the China Ocean-Shipping Group Company in Harvard University. It is carried on Page 7 of People's Daily June 4, 2001.

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