State Council Proposes Restructuring Scheme

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Last updated at: (Beijing Time) Friday, March 07, 2003

State Council Proposes Restructuring Scheme

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China is planing to set up a State property regulatory and management commission in an effort to deepen the reform process in that area, State Councillor and State Council Secretary-General Wang Zhongyu announced in Beijing yesterday.

The establishment of the proposed commission - to be called the State Asset Management Commission - would aim to further transform government functions to adapt to the new situation in China's reform and opening-up process and to promote the development of State-owned enterprises.

Authorized by the State Council, the commission would work on behalf of the nation and be responsible for supervising and managing State-owned assets, Wang told the first session of the 10th National People's Congress.

The commission's functions and powers would extend to all enterprises affiliated to the central government.

Local State-owned assets would come under the terms of reference of local management authorities, which would be set up step by step following the establishment of the commission.

Other State-owned assets would be dealt with according to the relevant legislation.

The commission would be given the power to guide and push forward the reform and restructuring of the enterprises, appoint and remove their chief officials, evaluate the enterprises' achievements, draft laws and regulations in accordance with the management of State-owned assets and give instructions to local departments in that sector.

However, the commission would be unable to interfere directly in an enterprise's production and other operations.

It would also be asked to pay close attention to help enterprises deal with any difficulties they experience during restructuring.

The establishment of the new commission is an important step but more legislation will be required in the future to perfect the State asset regulatory and management system, said Wang.

The setting-up of the proposed commission will be an important step forward, said Wang.

Wang told the congress that the country will also reorganize the State Development Planning Commission, a key department under the State Council in charge of macroeconomic planning.

It will become the State Development and Reform Commission in an effort to improve China's macroeconomic control system.

The reorganization is aimed at helping China's economy develop and the reform of its economic system progress, as well as co-ordinating this economic reform with reform in other fields.

The current macroeconomic adjustment and control system feature significant duplication of government functions.

This has greatly hampered the State's power to co-ordinate the economic and social development.

The new development department will draft and implement a strategy for the national economy and social development, long-term and annual planning, industrial policy and pricing policy.

It will be required to give priority to reforming its own structures, push forward the reform of the financing system and decrease the amount of administrative approval procedures so that market mechanisms will play a greater role in the economy.

Wang told the congress that food safety and workplace safety were also important areas for government reform.

He said that the State Drug Administration will become the Food and Drug Administration in a bid to reinforce supervision over the safety of food, health products and cosmetics.

The new authority will continue to carry out supervision and management work and organize investigations into serious accidents.

To enhance supervision and control work in the field of workplace safety, the State Administration of Work Safety will be responsible for the comprehensive supervision and special inspections of mines.

The administration is expected to come under the State Council's direct guidance. (China Daily News)

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