Random Selling of Smaller Enterprises Prohibited 　　The central government said an abrupt brake will be put on random selling of small and medium-sized State-owned enterprises. 　　Haphazard selling has caused "losses of State assets and difficulties in recovering the bank debts and the unpaid taxes," The State Economic and Trade Commission (SETC), the Ministry of Finance and the People's Bank of China said in a joint circular yesterday. 　　The circular said that the sweeping reforms in smaller firms have been successful in some cases. 　　Smaller enterprises account for 99 percent of China's registered 10 million firms and employ three-quarters of the country's rural workers, according to statistics of the SETC's newly-created Small 　　and Medium-Sized Enterprises Department. 　　There are many ways for them to compete and survive in the market and be responsible for their own profit and loss, according to the circular. 　　During the years of reform, shareholding co-operation and other non-State ownership systems have been chosen by many small 　　enterprises. 　　However, some regions adopted a single solution: selling off the smaller firms, and wiping out all their responsibilities, even though it would be detrimental to the interests of the corporate workers, the circular noted. 　　The circular did not say how many smaller firms had gone to the non-State hands. 　　"Government departments at all levels should have a more accurate understanding of the central government's principles regarding reforms in smaller State firms, and should implement various practical measures to invigorate the enterprises," the circular said. 　　It said the selling of the State's smaller firms should "be conducted statutorily." 　　No smaller firms in the social welfare sector should be sold. Anyone who sells firms to overseas buyers should obey the appropriate laws and regulations, the circular said. 　　"Selling of smaller firms should be conducted on an open and fair footing and undergo strict formalities at the local people's governments," the circular noted. 　　"The debtors' rights and interests should be protected, and the rights of the enterprise workers should not be interfered with," it continued. 　　There also should be the necessary supervision and management of the smaller firms when and after they are sold. If there are favoritism and cheating in the course of selling the firms, those concerned should be investigated. Economicnews 1999-02-25 Page2 Full Story in Chinese