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Premier: China's state sector robust
(Xinhua)
Updated: 2008-03-05 09:58

BEIJING - Chinese Premier Wen Jiabao voiced satisfaction over the vitality of the state sector, saying its impact and influence on the national economy were "greatly enhanced" over the past five years.

The total value of assets of state owned enterprises in 2006 grew by 60.98 percent compared to 2002, their total profits increased by 223 percent and their tax contributions grew by 105 percent, Wen said in his report to the First Session of the 11th National People's Congress opening here on Wednesday.

Reviewing the central government's work over the past five years, Wen said China consolidated and developed the public sector, made progress in reform of the management system for state-owned assets and adjustment of the distribution and structure of the state sector, and set up and improved a system for investors of state assets.

"We accelerated the reform to institute a stockholding system in SOEs, and a number of large companies and conglomerates with the ability to compete internationally were formed. Reform of the postal service system proceeded smoothly, and encouraging progress was made in reforming the power, telecommunications, civil aviation and railway industries," said Wen.

He noted the old industrial bases, such as northeast China, are now showing new signs of vitality thanks to the country's strategy of rejuvenating the regions.

The government increased efforts to develop large grain production bases and made breakthroughs in reforming, reorganizing and upgrading SOEs, Wen said.



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