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China's top legislature pledges SOE reforms

10-26-2012 11:07 BJT

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The Standing Committee of the National People's congress has reviewed a report on the reform of State-owned Enterprises. Lawmakers had a heated discussion on the report, giving their suggestions on how to deepen reform of state-owned sectors.

The debate is centering on how to improve the efficiency of the state sector, a topic that has never failed to attract public attention.

China has endeavoured to reform its bulky state-owned enterprises since it adopted a market economy and opened up to the world in the late 1970s.

The top legislature’s standing committee has released a report vowing to reform stated-owned sectors and expand market access to industries long dominated by the state sector, such as telecommunications.

But some lawmakers argue that the report should include analysis on other industries like finance and culture, rather than only focusing on traditional pillar industries.

Hua Jianmin, vice chairman of Standing Committee of NPC, said, "We should increase the quality of reform by strengthening the innovation sectors and enhancing cooperation and our social responsibilities."

A majority of state-owned enterprises are in traditional industries instead of high-tech and emerging industries and they largely rely on expanding investment to boost growth.

The report says the government will push for large state-owned enterprises to go public or list their main businesses if conditions allow.

But lawmakers are warning of the potential risks.

Shi Xiushi, member of Standing Committee of NPC, said, "We should encourage more State-owned Enterprises to go global, but at the same time we should perfect our risk prevention measures in order to better protect our state assets abroad."

About 72 percent of state-owned enterprises under the central administration, mostly large ones in key sectors, have become corporations or shareholding firms, up from 30.4 percent in 2003. But old problems that occurred in the labor system and inefficiency in cost control and pollution still plague some companies.

Reporter: "The achievements of the reform demonstrated the successful combination of public ownership and market economy. But the reforms in some key sectors still relatively lag behind. Law makers are calling for the government to stick to the path of reforming the State-owned Enterprises with its unique characters."


Editor:Zhang Rui |Source:

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