Government to revive the state capital 03-09-2004 14:33

Earlier, in his work report, Premier Wen Jiabao noted that one of the top priorities of the government's economic work this year will be to revitalize state-owned enterprises. Now, further reforms are expected to be carried out to build on the current wave of change.

During the ongoing sessions of the NPC and CPPCC, many discussions and suggestions have been made on this issue. Maintaining and enhancing the value of the state assets has become the most difficult mission in the government's economic work. Many areas have already started to experiment with the new forms of ownership.

According to Wang Xiaoguang, Senior Research Fellow with State Development and Reform Commission, "It's important to reform the existing state structure by way of changing them into share-holding business. But more importantly, non-state firms and overseas investment should be encouraged, especially in sectors that favor competition. Combining state assets with non-state and overseas investment should also be looked into."

Besides combining with non-state partners, other methods will include mergers and acquisitions, borrowing loans from banks, and listing on stock markets. No matter what methods are being adopted, the major task will be to change the government's role from controlling the companies to strengthening corporate governance, promoting innovation and exploiting talent.


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