Jiang Stresses Importance of Reform of SOEs ����Chinese President Jiang Zemin called on localities to seize the opportunity to push ahead with the reform and development of state-owned enterprises (SOEs) and make breakthroughs in this regard. ����Jiang, who is also general secretary of the Chinese Communist Party Central Committee, made this call in a speech delivered at an August 11-12 meeting called in Dalian on the reform and development of SOEs in north and northeast China's eight provinces and municipalities. ����"The period from now to the end of the first decade of the next century is a crucial stage in China's reform and development. During this time we should do our utmost to form a relatively sound socialist market economic system, and sustain rapid and healthy economic growth," Jiang emphasized. ����This is necessary for the country to realize its trans-century objectives in the modernization drive, and also for maintaining and developing the hard-won situation of reform, development and stability, Jiang said. ����"The good performance of SOEs is not only of major economic importance that concerns healthy and long-term economic development but also of major political significance that concerns the fate of the socialist system," he pointed out. ����The reform and development of SOEs is an important task for the whole of the Communist Party of China (CPC) and also a glorious mission history has offered to this generation of the Chinese people, Jiang said. ����"Under the guidance of Deng Xiaoping Theory and the Party's basic line, we have every reason, with rich experience gained from reform in the last two decades,to blaze a new trail in this regard, as we now have greater national strength and a more solid material and technological foundation, as well as the enthusiastic involvement of the people as a whole," Jiang said. ����The Party secretaries of Beijing and Tianjin municipalities, and Hebei, Shanxi, Jilin, Liaoning and Heilongjiang provinces, and Inner Mongolia Autonomous Region, attended the meeting and gave briefings on the operations of SOEs in their areas. Managers of some large SOEs in these areas gave some additional explanations. All the participants were optimistic about the reform of SOEs, promising to lead vigorous and prosperous SOEs into the 21st century. ����Jiang spoke highly of the great contributions made by the people of north China to the national economy and the achievements in the reform and development of SOEs. ����This is the fifth time this year that Jiang has presided over meetings on this subject. In today's speech, he focused on unswervingly promoting the reform and development of SOEs, further speeding up the development pace of SOEs and strengthening the Party's leadership in this regard. ����Jiang praised the SOEs and the working class for their great contributions made to the country over the past 50 years, adding that SOEs have been growing steadily since the reform and opening policies were introduced at the end of 1978. ����However, many problems such as falling economic returns, heavy debts and surplus workers still plague the SOEs, he said. ����Jiang urged government departments at all levels to pay greater attention to the problems, and take concrete measures to solve them, as the reform of SOEs has entered a crucial stage. ����He also called for more care for the laid-off workers, saying that improving their lives and ensuring their reemployment is a major political responsibility of the government. ����He stressed the importance of properly handling the relations between reform, development and stability, saying that social stability must be taken into account while promoting reform to ensure the long-term stability of the country. Jiang said that, in the course of developing the socialist productive forces and promoting the industrialization and modernization of the country, the SOEs, especially those of large and medium-sized ones, must play a pillar role. ����Measures must therefore be taken to explore ways to establish a modern enterprise system conforming to the development of the market economy, and improve SOEs' management and competitiveness to ensure their healthy development. ����Jiang also stressed the importance of maintaining and increasing the value of state-owned assets, saying that they are the common property of the people as a whole. Therefore, effective supervision must be carried out to guarantee that state-owned assets and their rights and interests are not violated. ����In order to shake off burdens and seek new development opportunities, the SOEs should step up technological upgrading and industry rebuilding, Jiang said. ����He stressed that SOEs should bear in mind the fact that science and technology are the primary production force, and pay more attention to production quality and efficiency. ����Moreover, Jiang pointed out that SOEs should also have a disciplined, capable and experienced leadership. He said that personnel reforms should be further promoted and a market mechanism should be introduced to choose SOE leaders. ����In his speech, Jiang also put special emphasis on the development of leadership in the SOEs. He said that adherence to Communist Party leadership is a basic political principle, and the guarantee for the smooth progress of all socialist causes. ����"The more complicated the global environment is, the more weighty and arduous our reform and development will be, and the more important the task of strengthening Party leadership," Jiang noted. ����He urged SOE leaders to stand in the forefront of the reform and make sure that key government policies and decisions are carried out. ����Jiang pointed out that the overall development situation of the SOEs is good, indicating that the government's policies concerning the SOEs and on stimulating domestic demand are correct. ����He said that the goal of the reforms and development of the SOEs will be accomplished, so long as all SOEs make full use of their capital, technological and personnel resources. ����"Promoting SOE reforms and development, in the final analysis, means strengthening the role of the state-owned economy within the socialist market economy," Jiang said. ����SOEs should adhere to the essential principle that our reform does not mean privatization, and the Communist party leadership in SOEs should play a core role in this regard, Jiang concluded. TopNews 1999-08-13 Page1 Full Story in Chinese