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SOEs Urged to Speed Up Reform

Vice Premier Wu Bangguo said state-owned enterprises (SOE) should speed up reform and development to further upgrade technology, exploit the market and increase competitiveness.

The official made the remark during an investigative trip, on September 16-19, into the relocation of the Three Gorges residents in the east China's Zhejiang Province. During his stay, Wu visited some major local SOEs and talked with local officials and managers.

The vice premier said with the fast development of a non state-owned economy, the state-owned economy in Zhejiang has also experienced a prosperous era after carrying out restructuring and reform.

The state-owned assets volume have doubled, increasing the control of the state-owned economy in the province's economy, he said.

Although the scale of the state-owned economy in the national economy will decrease, the control, effect and drive of the state-owned economy on the national economy will largely increase.

Wu urged the SOEs to fully make use of their own advantages in the field of technology. They must set up key hi-tech research and development projects to restructure traditional industries and adapt these enterprises to the market.

He encouraged SOEs to conduct more technological exchanges and cooperation with domestic and overseas high-tech counterparts. The cooperation will help SOEs obtain many advanced technological results with independent intellectual property rights for SOEs' future development.

With efforts of SOEs officials and employees, Wu pointed out, these enterprises have achieved a lot in the development of management reform and economic profits.

In the first seven months this year, the country's SOEs reported total profits of 113.2 billion yuan (US$13.6 billion), up 190 percent over the same period last year. Some 31 of 35 industrial sectors in China, especially petrochemicals, textiles, metallurgy, reported large-margin profit increase.

The goal of lifting state-owned enterprises (SOE) out of the red during the central government's three-year campaign will be realized for sure, the official concluded.

(Xinhua)



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