Premier Zhu Rongji calls for continuous efforts to advance reforms and bringing about comprehensive improvement in management.

At the opening meeting of the current session of the Ninth National People's Congress (NPC), Zhu said that to meet the objective laid down by the CPC Central Committee to establish and improve a socialist market economy, China should continue to implement reforms which provide a powerful driving force for pushing forward structural adjustment, improving economic performance and bringing about sustained, rapid and sound growth of the national economy.

He said the reform of state-owned enterprises is a key link in the efforts to deepen economic restructuring. "The top priority for this year's government work is to implement the decision made at the Fourth Plenum of the 15th CPC Central Committee in September 1999 to attain the goal set for a three-year period, that is, to turn around most of the large and medium-sized state-owned enterprises operating at a loss and implement a preliminary modern enterprise system in most key large and medium-sized state-owned enterprises," he said. "No time should be lost in setting standards for a modern enterprise system suited to China's conditions, which all enterprises should follow," he said.

He stressed that the enterprise management system should be reformed; the way enterprises are operated should be changed; and corporate management structure should be optimized. Inspection and supervision over large and medium-sized state-owned enterprises should be improved, and the board of supervisors system should be gradually consolidated and standardized.

Strategic restructuring of the state sector of the economy should proceed steadily. Ways of effectively instituting multiple forms of public ownership should be vigorously explored. Large and medium-sized state-owned enterprises to which the stockholding system is applicable should make use of the stock market and promptly implement stockholding system reforms, the premier said. In addition to developing those large enterprise groups that are internationally competitive, we should also realistically work to relax control over small and medium-sized state-owned enterprises in a variety of ways, Zhu noted. While keeping the public sector of the economy in the dominant position, sound growth of the non-public sector, including self-employed and private businesses, should be encouraged.

Zhu said the central authorities' guiding principles and policies on the reform of the grain distribution system should be further implemented.

The government will continue to purchase surplus grain from farmers at protective prices without any limit and the policy of setting higher prices for better quality grain products should be conscientiously implemented to promote improvement in the mix of grain varieties, he continued.

Meanwhile, Zhu said, the reforms of finance, taxation, banking, investment, funding and the circulation of goods should continue to proceed in an orderly fashion. The central authorities have formulated guidelines for the reforms concerning urban housing, medical insurance, pharmaceuticals and health care. Governments of all provinces, autonomous regions and municipalities directly under the central government should make their own decisions and arrangements in this regard in light of local specific conditions. The central authorities have defined the major policies on reform and development, and a number of important laws and regulations have been promulgated, he said. To ensure that these policies, state laws and regulations are observed to the letter, it is imperative that management be tightened, putting strict observance above all else.

Scientific management of enterprises should be conscientiously strengthened. They should work to establish and improve various rules and regulations and strictly implement the responsibility system for all posts. Senior managerial staff of all state-owned enterprises should conscientiously implement the regulations on honesty and self-discipline, and resolutely resist and oppose all kinds of corruption, he said.

Indiscipline in financial and economic affairs cannot be tolerated, and administration of these areas must be strict. Efforts to clean up and reorganize financial institutions engaged in illegal activities and those with serious problems should continue.

Foreign exchange management should be strengthened and improved. Good order should be maintained in public credit transactions and good settlement discipline ensured. Loans should be repaid and interest collected in accordance with the law, and debts owed to other enterprises should be paid off. Accounting firms and other intermediary institutions should be put in order and standardized. Administrative supervision and audit supervision should be strengthened by taking full advantage of the roles of supervisory and auditing departments.

Market order should be further improved. Those involved in producing and marketing counterfeit or shoddy goods, infringing on the rights and interests of consumers or other types of commercial fraud, should be severely punished. The fight against smugglers and traffickers must continue. Resolute efforts must be made to check unfair competition and regional protectionism, which tend to fragment larger markets and isolate local markets.

In order to bring about comprehensive improvement in management, the economic order in our socialist market economy must be standardized and safeguarded in accordance with the law, Zhu said, and various types of scientific management systems and mechanisms must be instituted and improved.

Officials in all industries and institutions must set high and strict standards, truly uncover problems in administration and management and take prompt actions to improve management and supervision by establishing rules and regulations and changing mechanisms, he said.