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Plans to reform state firms thwarted

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BOLD plans by the Government to restructure ailing state-owned enterprises have been thwarted by interference from localities and departments, according to a senior Chinese official.

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Chen Qingtai, vice-chairman of the State Economic and Trade Commission, admitted there was still great difficulty in implementing laws governing the management of state-owned firms.

Speaking at a national conference on the transformation of state-owned firm management, he said powers that should have been delegated to enterprises were still being held by various departments.

''Some of the powers have been transferred from one department to another but not down to the enterprises. Some said they have already delegated the powers but have not. Some departments were worried about what the department would do if they delegated all their powers.

''[They] are still interfering with the normal operation of the enterprises directly and indirectly,'' Mr Chen was quoted as saying in a China News Service report.

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The official also accused some administrative departments of setting up ''enterprises'' which were virtually government units in another name.

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