Economy

China makes progress to improve SOE management

(Cntv.cn)
Updated: 2011-05-12 16:52

Since 2005, China has been running a trial program to improve the executive management of centrally-controlled SOEs. To date, 35 enterprises have taken part.

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The State-owned Assets Supervision and Administration Commission of the State Council, or SASAC, says remarkable results have been achieved and the program will continue.

Shao Ning, Vice-Chairman of SASAC, points out business management in particular has been optimized. But problems do still exist, particularly when it comes to finding the best operating model for each business. And he says for some SOEs, cooperation between the general manager and president needs improvement. Some researchers say enterprises can benefit from participating in the trial.

Zhang Chunxiao, Researcher of Research Center of SASAC said "The trial program will make the decision-making process more logical and fair. As a result, regulations can be strengthened and operations become more standardized. Through improving business structure and reducing risks, those enterprises get more efficient and the value of state-owned capital can be enhanced."