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SOE Executives Not Allowed to Hold Government Posts

Executives from China's large and medium-sized state-owned enterprises (SOEs) will no longer be allowed to hold government posts, a senior official announced in Beijing Friday.

Sheng Huaren, minister of the State Economic and Trade Commission (SETC), said at a press conference that from now on, SOEs executives will not apply to the administrative levels of government departments, meaning that they will no longer be treated as government officials.

"Instead, SOE executives will become sheer managers, adapting themselves to the demands for a modern enterprise system," Sheng said.

Sheng also announced a new regulation issued by SETC on the establishment of modern enterprise systems in SOEs and the enhancement of SOE management.

The new regulation stipulates that the government will not interfere in the daily operation of SOEs, but strive to provide a sound external environment for SOE reforms.

SOEs will be run and pay taxes in accordance with laws and regulations, and be responsible for profits and debts. The government will take limited liability depending on its capital amount in the SOE.

(Xinhua 10/27/2000)



In This Series

State-Owned Enterprises to Increase Efficiency

SOE Reform May Introduce Cross-Border "M&A"

100 SOEs Under Strengthened Supervision

SOEs Reform Goal Within Reach, But Issues Remain Unsolved

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