GF 323
CONFIDENTIAL
3 -
機密
many of the
inefficient state-owned enterprises and to
limit the production of unpopular items by others(3),
Workers who were rendered redundant would still have to be
paid for the basic cost of living, but a considerable
amount of raw materials, energy and capital could then be
saved for more efficient use elsewhere. It appeared that
the reforms on state-owned enterprises were the most
innovative in Shanghai(4),
Meanwhile, the central
government will continue to support those state-owned enterprises with a more satisfactory performance(5).
4.
Notwithstanding the emphasis being placed by the
central government on the bottleneck sectors,
the
State
(3) According to the
Statistical Bureau, by end-September, stocks at the factory warehouses amounted to Rmb 230 billion and those held by the trading and supply companies amounted to Rmb 300 billion. Given that retail sales for each month are just around Rmb 75 billion, this stock level is unnecessarily high. Many of these stocks must be unpopular or even unwanted items.
(4)
(5)
Six state-owned enterprises in Shanghai have entered into agreement with the municipal government so as to enjoy preferential treatment similar to that granted to foreign-funded enterprises.
Another eight
state-owned enterprises are about to sign similar agreement with the government.
Some of these enterprises have more than 10 000 employees and are engaged in the production of key raw materials and capital equipment.
The State Council has devised 11 measures to improve the business environment for the state-owned enterprises. Measures of greater significance include a continuous injection of funds by the state for technical upgrading and product development, and increasing their autonomy in internal management and foreign trade.
In addition, the corporate tax rate for state-owned industrial enterprises will gradually be reduced from 55% to 33%.
CONFIDENTIAL
機密