Top Economic Planner Calls for Further Economic Restructuring

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Last updated at: (Beijing Time) Wednesday, March 06, 2002

Top Economic Planner Calls for Further Economic Restructuring

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Economic restructuring will be deepened in China this year to give added impetus to economic and social development, said Zeng Peiyan, minister in charge of the State Development Planning Commission on Wednesday.

Zeng made the remark in his Report on the Implementation of the 2001 Plan for National Economic and Social Development and on the Draft 2002 Plan for National Economic and Social Development, to the second plenary meeting of the Fifth Session of the Ninth National People's Congress (NPC).

The reform to institute a shareholding system in state-owned enterprises will be standardized. Corporate governance will be improved. Internationally competitive conglomerates and enterprise groups will be developed. Small and medium state enterprises will be let go of and enlivened in various ways, according to the official.

Corporate management will be improved and enterprises will be encouraged to make more use of information technology. Reform of the management system for monopoly industries will continue. There will be more effective guidance and careful organization so as to ensure normal production and business operations and stability of the workforce and prevent the loss of state assets.

Pricing mechanisms in the petroleum and natural gas, telecommunications, electricity and civil aviation industries will be improved. Electricity rates will be made the same for all urban and rural residents using the same power grid. The pricing mechanism for water supply and the policy for sewage treatment fees will be improved and a system will be set up to collect fees for urban garbage treatment to promote the industrial management of sewage and garbage treatment.

Closer attention will be paid to the role of a modern distribution industry in increasing production and consumption. Reform of the distribution system needs to be accelerated. Strong efforts will be made to develop the goods flow market and the professional and socially responsive service system including commercial chains and physical distribution organizations.

The reform of the grain distribution system will be further deepened and the reform of state-owned grain trading enterprises will be accelerated. All policies and measures concerning reform of the cotton distribution system will be conscientiously implemented.

Reform of the investment and financing system will be accelerated to set up mechanisms to stimulate and restrain investment by enterprises as soon as possible. Except for major projects and those for which special rules apply, enterprises will be allowed full independence in decision-making for their investment in all projects, assuming full responsibility for risks.

The way state-owned financial enterprises operate will be improved and a strict responsibility system for the approval of project loans will be established. Strong efforts will be made to explore ways of expanding financing channels for enterprises. Decision-making for state investment in projects will be made more scientific and democratic for better management and utilization of government investment funds.

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