Source:
https://scmp.com/article/294531/promotion-draws-hu-jintao-closer-presidency

Promotion draws Hu Jintao closer to presidency

Hu Jintao took another step towards succeeding Jiang Zemin when he was promoted to vice-chairman of the powerful Central Military Commission at the annual plenary session of the party's Central Committee.

Vice-President Hu, 56, has no military background but is a member of the Politburo's Standing Committee. He has been groomed for the top job but this post implies an acceptance of his position as the heir apparent by the military.

Two generals from the regions were promoted to the commission in a plenum devoted largely to agreeing on reforms for the troubled state-owned enterprises.

Mr Jiang, who as party chief is also head of the commission, outlined a plan to turn around large state enterprises over the next three years.

Details of the plan remained vague despite a communique describing the reforms as urgent.

'No time can be lost in the midst of fierce global competition to restructure and strengthen the state sector and allow it to assume its major role in the nation's economy,' the communique said.

It mentions both maintaining 'dominant' state control over important industries as well as exploring 'effective methods of public ownership' and 'vigorously developing a joint stock system and mixed forms of ownership'.

The party seems to have agreed on reducing government interference in the running of enterprises and a more professional management system, but ruled out radical steps such as large-scale closures or sell-offs. The communique indicated managers would be paid more and given stock incentives.

Bankrupt factories in the interior and minority areas were promised more support as were small and medium-sized firms.

The last party congress in 1997 agreed on a policy which would privatise small and medium-sized state companies. But it now seems it will continue subsidising factories in the interior, often set up by the military, rather than 'letting them go'.