Economic chief Zhu Rongji has formed a high-level co-ordinating unit to tackle the nation's ailing state-owned enterprises.
He is also drafting the Government Work Report to be delivered at the first session of the Ninth National People's Congress in March.
A Beijing source said yesterday the Leading Group on the Reform of State Enterprises was headed by Mr Zhu.
The deputy head is the Vice-Premier in charge of economic reform, Wu Bangguo.
The source said a number of 'Young Turks', whom Mr Zhu had recently promoted, would play a role in the group.
'Zhu's credibility rests on whether he can fulfil his promise of 'rectifying' money-losing enterprises in three years.' The source added that the reform of enterprises and the improvement of 'macro-level adjustments and controls' would dominate the annual NPC report.
It is understood that while Prime Minister Li Peng will deliver the report before he officially steps down from the State Council, Mr Zhu and his advisers will have plenty of input in the state-of-the-nation address.