Minister Briefs on China's SOE Reform Since Year 1978

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Last updated at: (Beijing Time) Monday, September 23, 2002

Minister Briefs on China's SOE Reform Since Year 1978

Minister in charge of the State Economic and Trade Commission Li Rongrong on September 19 made a report on China's state-owned enterprises (SOE) reform and major achievements made during the reform.

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Minister in charge of the State Economic and Trade Commission Li Rongrong on September 19 made a report on China's state-owned enterprises (SOE) reform and major achievements made during the reform.

Li said that since the Fourth Plenary Session of the 13th CPC Central Committee in 1978, China has achieved great success in state-owned SOE reform. He talked about five achievements made in the reform.

First, state-owned enterprises consistently strengthened their strength and play an important role in social and economic development. From 1989 to 2001, industry added value of state-owned enterprises increased by 11.7% yearly, 2.4% higher than the annual GDP's 9.3% growth rate, product sales volume increased by 12.3% on average annually.

Secondly, state economic layout is optimized, laying enterprises on an overall enhanced level. State economy plays a dominant role in petroleum, petrifaction, metallurgy, electric power, railway, weaponry, shipping, aerospace and related industries. From 1989 to 2001, China's SOEs reduced to a number of 47000 from 74000, while profit rose to 238.9 billion yuan from 73.4 billion yuan.

Thirdly, a restructuring of SOEs was made, some good performing enterprises have withstood among others fierce market competition. In terms of sales volume, all the top 10 are large state owned enterprises. Among 520 key state owned enterprises, share holding enterprises account for 514, with a profit making up 59.2% of the national total.

Fourthly, technology and equipment are greatly upgraded, technology innovation strengthened, some enterprises grasped core technologies for their industry.

Fifthly, modern enterprise mechanism has been basically set up, some enterprises have been reformed into companies, 83.7% of 520 key state-owned enterprises have been transformed into companies, some large enterprises have got listed overseas and won credit on international capital market.

By PD Online Staff Li Yan

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