State-owned Economy Strategic Adjustment Countermeasures

The state-owned economy is the leading power in the development of the national economy, for the state-owned economy correctly guides, controls and influences the general situation of the national economy. Strategically speaking, to regulate the layout and structure of the state-owned economy requires that certain quantity should be remained, its general layout be optimized, its quality improved and corresponding measures established.The regulation of the layout and structure of the state-owned economy started in the early eighties, aiming to effectively promote the innovation and development of the state enterprises on a general scale. The regulation is introduced in order that the state-owned economy play a leading role in the economic development. The strategic regulation is planned to improve the national control, to support and guide the development of the state-owned economy and the economy of the whole society. Beside, the regulation can also strengthen the economic and national defense ability of our country, and the cohesive force of the Chinese people. It can also reflect the superiority of socialism. After more than twenty years exploration and practice, a lot has been achieved in the regulation of the layout and structure of the state-owned economy. Many state enterprises of large scale are pushing forward the instruction of a system of modern enterprises and the economic benefit has been improved a lot. In 2003, the state and state holding companies have gained a benefit of 461,000,000,000 Yuan RMB, including the benefit of 300,000,000,000 RMB from the central enterprises. The state-owned asset has been improved steadily, with more than 1,100, 000, 000 in 2002, more than the GNP of that year, two-thirds of which are operational assets, i.e. the state-owned assets. Although great progress has been achieved in the regulation, the unreasonable situation has not been entirely changed, with unreasonable layout and structure, a large proportion of certain fields, and incomplete corresponding measures. There is still a lot to do in the regulation of the layout and structure of the state-owned economy.