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Policy suggestions on increasing local State-owned grain enterprise reforms (No 178, 2014)


By Qin Zhongchun, Research Department of Rural Economy, and Lai Youwei, General Office, Development Research Center of the State Council (DRC)

Research Report No 178, 2014 (Total 4677)


Local State-owned grain enterprises are an important part of the State-owned grain enterprise system. They are a major channel for grain purchase and have made some progress in reform and development over the years. However, there are some problems in the reforms. Jiangsu Province in East China has been trying hard to reform its State-owned grain enterprises over the past few years, with some good results in transforming them and improving internal governance. Its successes include: the government getting a better understanding of the basic local State-owned grain enterprise situation in the province and increasing reform comprehensively; the province starting pilot county reforms with new business models; State-owned grain enterprises growing in size and profits; and grain circulation speeding up transformation and upgrading and some enterprises making changes. So other parts of the country need to learn experience from Jiangsu and need to push reforms in local State-owned grain enterprises by separating administration from management, accelerating the establishment of a modern enterprise system, developing modern grain distribution and transforming local State-owned grain enterprises.