China Reform Plan to Test State-run Companies
CHINA REFORMS AND REFORMS <Please Reference & Read the Source>. The Articla of
William Ide – November 17, 2013 – in VOA News Today:
BEIJING — China has announced a new wave of wide-ranging economic reforms that could put unprecedented pressure on the country’s state-owned enterprises and perhaps end decades of government dominance in some sectors of the economy.
China’s release late last week of a long list of what could become a historic new wave of reforms included specific details about a wide range of issues – from social changes such as easing the country’s one-child policy to measures to protect the environment. It even included plans to streamline the military, and anti-corruption measures that would provide government officials with housing and bar them from occupying other properties.
But, among the some 60 objectives outlined in the report, economic reforms were the most prominent.
China’s economy is expanding at its slowest rate in more than two decades and there are growing calls for the government to create a new economic model for the country. A model that relies less on exports and more on domestic consumption, that gives small and medium sized businesses more room, and allows the market to play a bigger role in the traditionally state-controlled economy.
Analysts say the proposed changes to state-owned enterprises will be key to ensuring the success of the overall reform effort.
Barry Naughton is an economist and professor at the University of California San Diego. He says, “The people who wrote this report are obviously trying to create significant movement on state-owned enterprises. They put a lot of concrete provisions about state-enterprise reform.”
Transparency and openness
Some of those provisions include a push for more transparency from state-run companies, more openness in their reports and budgets. The reform plan also addresses things such as the pay managers at state-owned companies make and the need to make the companies more market based.
State enterprises will also be asked to give a larger share of their revenues back to the government. Currently, state companies contribute around 10 to 15 percent of their revenues to social welfare. According to the plan, they will need to increase that amount to 30 percent by 2020.
In a recent interview with state-run broadcaster CCTV, a leading economic official in the Communist Party, Yang Weimin, vice head of the Office of the Central Leading Group on Finance and Economic Affairs, says the government’s reforms aim to create a more level playing field between private and state-owned enterprises.
The reforms would allow more private participation in state-owned companies and in some sectors, he says, the state may withdraw and let private enterprises take over. Yang says this really is new: “Perhaps people looking at the document might think that they have heard all of this before, but the intensity of these reform measures is considerably stronger.”
SHARING MY PERSONAL IDEA:
To my knowledge, Communism has been loosing its Objective to realize Equal Welfare for People since the Collapse of Soviet Union, and returning to the Capitalist Economy Market (CEM) which has also been progressing by previous Pure Capitalists in the past centuries when they returned their Colonies to related People. In reality Communist China, North Korea and Vietnam plus Cuba have been directing their Ideoology (Communism) into CEM as well under their New Terminology “Socialism Directed To The Economy Market”; However, They missed Considering This Equation: One Side is Socialism, and Another Side is Capitalism. This Equation has its two Conflicting Elements that must be chosen with ONE. Gradually, we realized Communists have become Red Capitalists, not Socialists at all? This is the reason, They Must Reform Many Times Until Its Theory and Practice are in balance when they become exactly as Capitalist Democratic Nations sooner or later./.