State Economy Can Fully Be Compatible With Market EconomyHighlights:*Guangdong is a large province of export, economy, industry as well as State economy and State-owned enterprises (SOEs); *State economy remains the mainstay of Guangdong's economy, with a strong force of control, influence and promotion; *Concerning the reform and development of SOEs, it is entirely possible for Guangdong to realize the two major targets of the reform of State-owned enterprises and getting them out of difficulties in three years; and *The State economy and SOEs play the role as the main force in developing high and new technology industries. Following is a dispatch by our correspondent Huang Xingqun and reporter Fu Xin from Guangzhou on July 30: The Central Group of supervising and investigating the reform of SOEs and lifting them out of difficulties, after concluding its examination of the situation regarding how Guangdong has pushed forward the reform and development of SOEs by implementing the spirit of the Fourth Plenary Session of the 15th Central Committee of the Communist Party of China (CPC), fully affirmed the remarkable results gained by Guangdong in the reform of SOEs, thinking that Guangdong was very conscientious in carrying out the essence of the Fourth Plenum of the 15th Party Central Committee and the important speech of General Secretary Jiang; Guangdong's practice proves that the State economy and SOEs can fully be compatible with the market economy and can grow sturdily in the soil of the market economy. On the morning of July 30, members of said group had an exchange of opinions with relevant responsible members of the Guangdong provincial Party committee and government on questions relating to the ideas and focal points concerning further speeding up the reform and development of SOEs. Beginning from July 21, the Central Supervising and Investigative Group went in succession deep into the five cities of Guangzhou, Shaoguan, Huizhou, Dongguan and Shenzhen to carry out its work, members of the group inspected 13 enterprises, held 29 forums, had extensive exchanges of opinions with leading members of government departments and enterprises at all levels, workers and staff members and laid-off workers and acquired detailed knowledge of the situation about the reform and development of Guangdong's SOEs. Li Deshui, head of the Central Supervising and Investigative Group, and deputy director of the Research Office of the State Council, pointed out: Guangdong Province is very conscientious in carrying out the essence of the Fourth Plenary Session of the 15th Party Central Committee and General Secrtetary Jiang's important speech, his general appraisal is: Leaders' close attention, resolute attitude, clear train of thought, swift action, proper arrangements, effective measures, marked results and many innovative ideas, concrete manifestations of which are as follows: first, from the high plane of the "three representatives" (representing China's advanced productive forces, representing China's advanced culture, and representing the fundamental interests of the broadest section of the people), Party committees and governments at all levels fully understand the importance of the work relating to the reform and development of SOEs, creating a province-wide good atmosphere in which the number one man personally grasps the work relating to SOEs; second, they maintain close link with reality, creatively implement the essence of the Party Central Committee and the provincial Party committee, actively explore an effective form for realizing public ownership, blaze trails with respective distinguishing features; third, they persist in the principle of "both advance and retreat", conduct readjustment to the arrangement of SOEs, quicken the pace of relaxing control over small enterprises, large and medium-sized enterprises have experienced constant development and growth as they advance toward pillar industries and high and new technological industries; fourth, focusing on 83 units of large enterprise groups and 50 units of leading industrial enterprises, the province actively presses ahead with the construction of a modern enterprise system, conscientiously changes government functions, persists in separating government administration from enterprise management, all with remarkable results; fifth, fairly great efforts are devoted to structural readjustment, the work of getting the three exceptionally difficult industries-coal, textile and sugar-refining-out of difficulties is going on smoothly, bringing about a higher level and higher grade for the province's SOEs through developing high and new technological industries; sixth, the reform and construction of a social security system is advancing in the van of the country; seventh, the change of conception is in the lead; and eighth, people from top to bottom in the province are full of confidence in the reform and development of SOEs and have maintain social stability in the course of reform. Li Deshui points out that through inspection the supervising and investigative group has made five judgments: First, Guangdong is a large province of export, economy, industry, as well as State economy and SOEs. The current economic situation in Guangdong is excellent, the Pearl River Delta, in particular, is full of vitality and vigor. This achievement is, to a great extent, attributed to the success in the reform and development of SOEs. Second, Under the circumstance of rapid economic development of various forms of ownership, the State economy remains the mainstay of Guangdong's economy, playing an important leading role and having a strong force of control, influence and promotion. Third, judging from the present situation with respect to the reform and development of SOEs, it is entirely possible for Guangdong to achieve the two major targets of reform of SOEs and shaking them off difficulties in three years. Fourth, Guangdong is a region with a high degree of marketization, Guangdong's practice proves that the State economy and SOEs can fully be compatible with the market economy and can grow sturdily in the soil of the market economy; at the same time, it is only under the environment of the market economy, is it possible to give full expressions to the "magnified" effect of the State economy and SOEs. Fifth, Guangdong's State economy and SOEs play the role as the main force in developing high and new technological industries and they are further amassing forces in this respect. This fact shows that there is ample scope for the State economy and SOEs to carry out structural readjustment and promote industrial upgrading. In light of the problems discovered in the course of supervision and investigation, Li Deshui put forward several points of hopes and suggestions regarding the reform and development of Guangdong's State economy and SOEs in the next stage: first, further bringing understanding in keeping with the spirit of the Fourth Plenum of the 15th Party Central Committee, enhancing the vigor of SOEs and the controlling force of the State economy, further readjusting the strategic layout of the State economy, at the same time, accelerating the development of non-State economies. Second, persistently deepening the reform of SOEs, particularly intensifying working efforts in pressing ahead with enterprise internal system reforms and perfecting the legal-person management system. Third, continuing to decontrol and invigorate small and medium-sized enterprises through various forms, especially those small enterprises, who cannot cover their debts with their assets and have no way to go bankrupt, should make bold ahead-of-time exploration of channels through which to retreat from the market. Fourth, Training and bringing up a large batch of entrepreneurs good at managing the State economy as quickly as possible and improving the quality of enterprise managers. Fifth, further making a good job in the construction of a social security system, and continuing to expand the coverage of social security. Sixth, Striving to develop a batch of large enterprise groups and creating a batch of transnational corporations. And seventh, vigorously developing the tertiary industry, intensifying the attraction and utilization of foreign capital for infrastructure construction. Li Deshui finally stressed that the large amount of fresh experiences created by Guangdong in the reform and development of SOEs should be summed up and popularized conscientiously, so as to promote the development of the work of the whole province and even the whole country. |
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