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双语阅读：2003年政府工作报告（14）

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4. Steadfastly carrying forward the reform of state-owned enterprises and effectively strengthening reemployment work and development of the social security system

The reform of state-owned enterprises is the key link in our overall economic restructuring. If we fail to press this reform forward, there will be no future for our state-owned enterprises. In the past five years, we fought a tenacious battle to deepen the reform of state-owned enterprises by adhering to the orientation of the socialist market economy, braving difficulties, overcoming tough obstacles and constantly intensifying our work.

First, we accelerated the development of the modern corporate system. In line with the principles of "clearly established property right ownership, well defined rights and responsibilities, separation of enterprises from government and scientific management", vigorous efforts were made to carry out reforms aimed at introducing the standard corporate system and the joint-stock system and improving corporate governance. We deepened the reform of enterprises' internal systems for distribution and human resources and labor employment management and established incentive and disciplinary mechanisms. At the same time, we encouraged eligible large state-owned enterprises to get listed after the stockholding system was established. In the past five years, 442 additional state-owned or state-holding enterprises were listed in and outside China; they raised 743.6 billion yuan, including US$ 35.2 billion raised abroad.Second, we established the mechanism of selection whereby superior enterprises will prosper and inferior ones be eliminated. With the strategic readjustment in the layout of the state-owned sector of the economy and the reorganization of state-owned enterprises, we encouraged large companies and enterprise groups with a competitive edge to grow bigger and stronger, so that they will become key pillars of China's national economy and main participants in international competition. At the same time, we formulated a series of policies and regulations on appropriate job placement for employees, financial compensation to employees when their labor contracts with enterprises are revoked, and the State Council-sanctioned cancellation of bad bank loans to enterprises. A number of exhausted mines and enterprises that had long been in the red with no hope of becoming profitable were able to close down or declare bankruptcy smoothly, suggesting that we had created a market withdrawal mechanism for inferior enterprises.Third, work was done to reduce the burden on enterprises and free them from historical baggage. The four financial asset management companies, set up as part of the reform to dispose of bad assets of the state-owned commercial banks, selected 580 eligible large and medium-sized state-owned enterprises for their debt-to-equity reform. The asset-liability ratio has dropped for those enterprises that have undergone this reform and most of them have become profitable. Effective measures were taken to resolve other problems, such as redundant workers and enterprises running social services.Fourth, we made vigorous efforts to encourage innovation in enterprise management. Strong efforts were made to promote enterprise IT application, improve management of costs, capital and product quality and raise the level of enterprises' modern management in an all-round way.Fifth, we intensified external supervision over enterprises. The State Council has appointed supervisory boards to 192 key state-owned enterprises and some state-owned financial organizations and instituted economic accountability auditing for leaders of all state-owned enterprises and state-owned financial organizations. These measures are important for improving management in enterprises and preventing loss of state assets.

One important reason for our major progress in the reform of state-owned enterprise is that we stuck to the policy of encouraging mergers, standardizing bankruptcy, laying off and reassigning redundant workers, streamlining for higher efficiency and implementing reemployment projects, and we worked hard to promote reemployment and improve the social security system. In recent years, the Party Central Committee and the State Council called two national working conferences on reemployment and formulated a succession of policies and measures. Reemployment service centers were set up to help laid-off workers make ends meet, pay social insurance for them and promote their reemployment. When enterprises went under, priority was given to properly arranging for their employees. Since 1998, state-owned enterprises have laid off more than 27 million workers. Over 90% of them have benefited from reemployment service centers, and more than 18 million have found new jobs through various channels. At the same time, steps were taken to improve the "three-stage guarantees" for laid-off workers. Governments at all levels have increased their capital spending year after year on social security and reemployment. In 2002, the central government spent 59.4 billion yuan to support the "two guarantees" and subsistence allowances, 6.2 times that of 1998. The experiment on improving the urban social security system carried out in Liaoning Province since 2001 has been a success, and it has yielded valuable experience for gradual application nationwide.

Facts have proved that the policies and guidelines of the Party Central Committee and the State Council on reforming state-owned enterprises, promoting reemployment and strengthening the social security system are correct, complement one another and form an integral framework. We can reach the goals of the reform of state-owned enterprises only when we follow these policies and guidelines completely.