Hot Words

抓大放小 (zhuada fangxiao)

Restructuring Major Enterprises and Relaxing Control over Small Ones

A strategy for reforming the State-owned enterprises stressing that the major enterprises in key sectors should be supported to gain further development while the smaller ones should compete in the market.

Initiated in the mid-1990s when the country tried to step up the efficiency of State-owned enterprises as a whole, the strategy was formally accepted as a principle for reforming the public-owned economy in 1997. Big public enterprises were encouraged to develop into groups or establish partnership with each other. Smaller public enterprises were reformed flexibly through market-oriented means, like becoming shareholding businesses, acquisition and merger and contracting managing rights to individuals.

(China Daily 07/03/2008 page8)