The demobilized soldiers of the Chinese armed forces this winter will be encouraged to find jobs in the private sector, while factories and institutions of all kinds must help re-employ the large number of demobilized soldiers, the Chinese government has said.

according to a recent circular issued by the State Council, China's highest governing body, and the Central Military Commission, governments at various levels should pay a fair subsidy to demobilized servicemen willing to work for private enterprises or who plan to open their own businesses.

The document says 1999 is a crucial year as it is the first year of a plan by the Communist Party of China (CPC) Central Committee to cut the size of the armed forces by 500,000.

Governments at all levels should take deal effectively with the matter in order to help push forward the military reform, safeguard social stability and push the economic development, the circular says.

It also asks that favorable policies be adopted for those demobilized who are applying for government posts or studying in universities or secondary schools.

And meritorious demobilized servicemen or those with expertise in a certain field should receive special attention, the circular says.