State sector wins wider autonomy
THE central Government has granted more autonomy to the ailing state sector as part of its resolution to press forward with enterprise reform.
The State Administration for Industry and Commerce has outlined a series of measures which aim to help state enterprises - most of which face problems of surplus labour and heavy losses - to fight for survival in the market place.
According to a Hong Kong China News Agency report yesterday, the Government would allow state enterprises to set up 'self-supporting' service sector businesses, which would provide employment for surplus labour.
More flexibility was being given to state enterprises to set up ventures in other fields, the dispatch said.
Enterprises were also authorised to swap and sell the raw materials they had bought which were unsuitable for their own use.
The Government would also relax its control over areas including the retail, wholesale, transport and storage of commodities, the report said.
Meanwhile, the Government has announced plans to loosen its grip on the registration of companies by simplifying the licence application process.