Xinhua News Agency

Warning on bid to boost business

PUBLISHED : Tuesday, 03 January, 1995, 12:00am
UPDATED : Tuesday, 03 January, 1995, 12:00am

CHINA'S ambitious scheme to turn 100 of its state enterprises into modern businesses cannot solve all the problems the state sector faces, the State Commission for Restructuring the Economy has warned.

The commission, which is responsible for the design and implementation of the scheme, cautioned that the experiment was only meant to provide other enterprises with experiences and examples to follow.

Instead of boosting its significance, the commission was quoted by Xinhua (the New China News Agency) yesterday as saying that the scheme was only a continuation of previous enterprise reform programmes undertaken by the Government.

'[China's] decade-long enterprise reform experiment is a stage-by-stage growing development,' the commission said. 'It is a progressive process.' Beijing has given enterprise reform top priority on its economic reform agenda for this year and vowed to make it a success.

The scheme included choosing 100 enterprises across the country and promising them greater autonomy in running their business with less government interference.

But critics have raised the question of how much freedom Beijing is willing to give these 'modern enterprises'.

The Xinhua report yesterday reiterated that although the reform scheme might not be able to solve all the problems state enterprises faced, independence in running their business would be a cornerstone of the scheme.