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Premier points to Net gains for State-owned companies

Updated: Sep 22,2015 3:36 PM

State-owned companies must avail of opportunities from the Internet as well as mass entrepreneurship and innovation to improve their competitiveness, Premier Li Keqiang said in a discussion with management of large State-owned companies about reform of State-owned companies on Sept 18.

He made the remarks as Rui Xiaowu, president of the China Electronics Corp reported during the discussion that his company had launched a “makers camp” project, which offers technologies and parts for makers, trains and finances them.

“Mass entrepreneurship and innovation helps not only medium, small and micro-companies, but also large companies, especially State-owned companies, thrive. This is the source of motivation for China’s sustainable and healthy economic development,” the Premier said.

After Li Guohua, general manager of China Post, reported his company began to realize the great potential in express delivery brought about by the booming e-commerce industry, the Premier said that companies must catch the trend of the Internet in order to survive and develop.

He also encouraged State-owned companies to partner with private companies, which will not only improve people’s lives, supplement public products, but also make the use of State-owned assets more efficient.

State-owned companies should also establish a personnel system that promotes those who are competent and demote those who are not, and also explore markets abroad, he added.

On the other hand, government departments must not exploit companies, he said.

He said that government departments must not charge companies unreasonably or impose unreasonable requirements on companies that will increase their costs.

“There are various kinds of fees that shouldn’t be charged. Companies are already surviving on small profits. How are they going to survive if their costs increase? “ he said. “Only after companies thrive can the economy thrive and can people’s lives be improved.”