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Heilongjiang begins to privatise small firms

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NORTHERN China's Heilongjiang province has launched a two-year programme to privatise nearly 3,000 small state-owned industrial enterprises as part of efforts to rejuvenate the ageing industrial base.

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Yang Weiling, vice-director of the Heilongjiang Commission for Restructuring the Economic System, said the provincial government had decided to carry out major reform.

This bold move will result in a change of ownership of 2,942 small industrial enterprises in the province.

Heilongjiang has been China's traditional heavy industrial base for decades, but the state-owned sector has become a burden for the northern province in the past decade.

Reform in large enterprises has been slow because many are directly controlled by central government ministries.

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In additional, many large concerns are in sensitive industries, making it difficult for the provincial government to take any initiative to improve performance.

As a result, Heilongjiang has opted to first tackle small enterprises run by the the local authorities.

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