GF 323

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Analysed by main ownership types, while industrial output

from non-state-owned

45%

/

enterprises was up sharply by between

that from state-owned enterprises

and 69% (3) increased by only 10%(4). As a result, the share of

(3) Gross industrial output in real terms, analysed by

main ownership types of industrial enterprises:

Value of output

Increase

over

1H 1992

(응)

(4)

Gross industrial output*

of which:

State-owned enterprises

Collectively-owned enterprises

of which:

Rural and township

enterprises

Foreign-funded and

private enterprises

in H1 1993

(Rmb Bn)

1,666.2

25.1

904.1

10.0

593.2

45.0

358.6

69.4

168.9

68.7

* Excluding output from village-run enterprises.

By

the end of June 1993, 31.1% of the state-owned enterprises were still suffering losses, compared with 32% recorded at end-June 1992.

In early August 1993, Chinese leaders met to assess the progress made in the implementation of the Regulations for Transformation of Operating Mechanism of State-owned Enterprises since their promulgation in July 1992. At the meeting, Vice Premier Zhu Rongji directed that future efforts should be devoted to the following three main areas, viz:

(i)

accelerating departments

stipulated

government

(ii)

developing

(iii)

government

the transformation of government to facilitate transfer of the rights in the aforesaid Regulations from departments to state-owned enterprises;

a proper relationship between the and individual state-owned enterprises, as well as а sound legislative framework for improving internal management of these enterprises through introduction of, say, the Enterprise Accounting Regulations and the Enterprise Finance Regulations; and

rendering a

better supervision of these enterprises and a better custody of the state

assets.

The present stated intention is for two-thirds of the state-owned enterprises to become fully market-oriented within three years and the rest within a further two

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