Chinese vice-premier Wu Bangguo has urged various localities and departments to meet state- owned enterprise (SOE) reform targets and lay a solid foundation for the development of SOEs in the next century.

Addressing the National Economic and Trade Working Conference which concluded on November 22, the vice-premier said that China will continue to expand its domestic market.

Wu said that deflation in China continues to pose difficulties for the economy. The vice-premier urged various localities to pay close attention to macro-economic control and economic readjustment, giving priority to developing metallurgy, coal, sugar-making, textiles, petroleum, chemicals, building materials and tobacco.

Only by establishing the modern corporate systems and reforming managerial administration, can enterprises turn losses into profits, Wu said.

The vice-premier called on various localities to take effective measures to guarantee the basic living standards and pensions of laid-off workers.

Wu expects that SOE reform targets set at the beginning of the year will be realized.