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The Reform of State-owned Enterprises
The reform of state-owned enterprises has always been the key link of China?s economic restructuring. Since the initiation of reform and opening-up, the Chinese government has made various experiments, trying every means to solve the problem of long-term, extensive losses incurred by state-owned enterprises. According to the follow-up investigations made by the State Statistics Bureau of 2,473 state-owned enterprises that started reform on a trial basis in 1994, by the end of 1999, 2,016 of them had been changed into companies in accordance with the Company Law.

In 2000, the total profits of state-owned and state-owned holding industrial enterprises came to 1,519.8 billion yuan, up by 8.1 percent over the previous year, and total profits came to 233.03 billion yuan. In the same year, most of the industries made up deficits or continually increased their profits.

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