Decision of the CPC Central Committee of Major Issues Concerning the Reform and Development of State-Owned Enterprises

Adopted at the Fourth Plenary Session of the 15th CPC Central Committee on September 22, 1999. Included in the Selection and Compilation of Important Documents since the 15th National Congress (Vol. 2).

The “Decision” holds that, in order to achieve the ambitious goal of China's Reform and Opening-up and modernization across the centuries, as proposed at the 15th Party Congress, promoting the reform and development of state-owned enterprises is an important and urgent task. The reform and development of state-owned enterprises is the basis for achieving long-term national security and maintaining social stability. In order to overcome the shortcomings of the traditional planned economic system, it is necessary to continuously deepen the reform of state-owned enterprises and the reform of the entire economic system and to promote modernization.

The “Decision” stresses that the public ownership economy, including the state-owned economy, is the economic foundation of our socialist system, the basic force of the State in guiding, promoting and regulating economic and social development, and an important guarantee for realizing the fundamental interests of the general public and common prosperity. If we are to strengthen the country's economic strength, national defense strength and national cohesion, we must continue to promote the development and growth of the state-owned economy. State-owned enterprises are the pillars of the national economy. To achieve the industrialization and modernization of the country, we must always rely on and give full play to the important role of state-owned enterprises. To this end, in order to establish and improve the socialist market economy system, it is most important to enable state-owned enterprises to form a management system and business mechanism that are adapted to the requirements of the market economy, and to vigorously promote the institutional reform of state-owned enterprises.

The “Decision” sets out the main objectives for the reform and development of state-owned enterprises by 2010 and ten guidelines that must be adhered to: (1) Developing diverse forms of ownership side by side with the public ownership as mainstay; (2) Strategic readjustment of the layout of the state-owned economy and restructuring of state-owned enterprises; (3) Combining the reform with restructuring, transformation and intensified management; (4) Establishing a modern corporate system; (5) Promoting scientific and technological progress of enterprises; (6) Comprehensively enhancing enterprise management; (7) Establishing a competitive mechanism of survival of the fittest; (8) Coordinating various supplementary reforms; (9) Relying on the working class whole-heartedly and giving full play to the role of Party organizations as the political nucleus within enterprises; (10) Promoting enterprises' ethical and cultural progress.

The “Decision” stressed: in order to accomplish this historical task, first of all, we should do our best to achieve the three-year goal of reforming state-owned enterprises and getting them out of their difficulties. Priority should be given to key sectors and enterprises, and old industrial centers in accordance with the realities of different sectors and areas and the process of uneven development. Solutions to current major problems should be combined with long-term development so as to create favorable conditions for the cross-century development of the state-owned enterprises.

The “Decision” also specifically elaborated on "strategic readjustment of the layout of the state-owned economy", "pushing forward the strategic restructuring of state-owned enterprises", "establishing and perfecting the modern corporate system", "enhancing and improving enterprise management", "improving the asset and liability structure of state-owned enterprises and reducing the social burden of enterprises", "doing a good job in diverting laid-off workers, increase efficiency by downsizing staff and encourage re-employment projects, and in social security", “accelerate technological progress and industrial upgrading of state-owned enterprises”, “create a favorable external environment for the reform and development of state-owned enterprises”, “building a contingent of high-quality managers” and “strengthening the leadership of the Party over the work of the reform and development of state-owned enterprises”, and other issues.

The “Decision” is a programmatic document to speed up the reform and development of state-owned enterprises. The reform of state-owned enterprises is the central link in the reform of the entire economic system. Its reform and development will not only give a great impetus to the development and growth of the state-owned economy, but will also strongly promote the deepening of China's economic system reform and accelerate the process of socialist modernization.