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Central SOEs reconstruction aimed at reform

Updated: Sep 29,2017 11:03 AM

The reconstruction of centrally administered State-owned enterprises (SOEs) is not a simple merger, but a move to deepen reform, Premier Li Keqiang emphasized at the State Council executive meeting on Sept 27.

As reconstruction forges ahead, redundant departments and personnel can be streamlined, with costs reduced and profits increased, Premier Li said.

However, during the process, “different measures should be taken for different SOEs, instead of a unified approach,” said the Premier. “We stand fast in protecting workers’ legitimate rights, transferring them to other positions rather than laying them off.”

In addition, debt-to-equity swaps should be conducted in a market-oriented and law-based manner, and private capital should be allowed to play a role in SOE restructuring to advance institutional innovation, according to the Premier.

He also called on SOEs to develop “Internet Plus” and “mass entrepreneurship and innovation” platforms for coordinated and innovative growth, and break rigid structures to enhance their vitality and competitiveness.