China's state-owned enterprises (SOEs) are now working under a "code of conduct" which means they must quicken the pace of modernization and improve their management.
The code was worked out at a time when the country is already pressing ahead with SOE reforms and preparing for entry into the World Trade Organization (WTO).
Sheng Huaren, minister of the State Economic and Trade Commission, said that it was necessary to have a code of conduct which lays down the basics for setting up a modern corporate system in China, and sets out the fundamental requirements for enterprises to strengthen management.
Such a code, if implemented to the letter, will propel forward SOE reforms and add to the competence and confidence of state-owned businesses in braving the challenges they face with entry into WTO.
Under the 69-article code, all large and medium-sized SOEs, except state monopolies, will be gradually transformed into limited and stock companies with multiple shareholders.
The code, revised and endorsed by state leaders including Premier Zhu Rongji, highlights making and implementing "correct development strategies" for the SOEs, and urges them to set up a rational decision making mechanism, and emphasizes the application of modern information technology such as electronic commerce.
(China Daily 10/28/2000)
