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New strategic move for central enterprises

By Hu Yang (chinadaily.com.cn)
Updated: 2009-06-15 18:08

China's State-owned Assets Supervision Administration Commission (SASAC) of the State Council called on strategic cooperation between central enterprises and reputable private enterprises as well as local State-owned enterprises.

Li Rongrong, minister of SASAC, said at a recent forum held in Chongqing that the commission will encourage and support central enterprises to cooperate with other types of enterprises to achieve the optimum distribution of resources and mutual development.

This call is another effort of reforming the central enterprises, an important sector of China's State-owned enterprises.

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Li also said State-owned enterprise reform needs to be furthered, and the focus is improving the management system and utilizing industry reconstruction to optimize State-owned assets. At the same time, State-owned enterprises should also reform the corporate structure, upgrade the information system and improve employee quality.

The forum Li attended was about the development of State-owned enterprises in Chongqing, during which 35 programs involving 148.7 billion yuan ($ 21.8 billion) were signed.

Li highly praised the forum, believing that it will promote the cooperation between central enterprises and Chongqing, China's largest municipality, and accelerate the city's development.

Li believed the cooperation with Chongqing will benefit both the central enterprises and local State-owned enterprises. He also expressed hopes that the participating central enterprises could successfully execute those programs by preventing risks, keeping control of the total investment and progress and creating new points of economic growth.