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Thursday, November 18, 1999, updated at 16:44(GMT+8)
Editorial Providing Theoretical Support for SOE Reform and Development

This article, written by Zhuang Chengwen, sums up the seminar held by the Publicity Department of the CPC Central Committee concerning the study of the gist of the Fourth Plenary Session of the 15the Central Committee of the Communist Party of China (CPC). Following are excerpts of this article:

Not long ago, the Publicity Department of the CPC Central Committee held in Shenyang a seminar on the study of the spirit of the Fourth Plenary Session. Participants maintained that a current important task of the theoretical front is to actively pitch into the great practice of the reform and development of State-owned enterprises (SOEs), and comprehensively, accurately and thoroughly study, publicize and implement the Decision, thereby making due contribution to SOE reform and development.

The Decision Is an Action Program for Promoting SOE Reform and Development

Participants ascertained that the Plenum as well as its Decision is of a landmark significance in the historical process of building socialism with Chinese characteristics, particularly in the historical process of the reform and development of SOEs, it will exert major and far-reaching influence on the major effort to push forward SOE reform and on cross-century development.

The attendees said to have a profound understanding of the important significance of the reform and development of SOEs, we must approach problems from the general situation of the world and national development. The international and neighboring environment facing China, on the whole, remains relatively favorable. But we must soberly notice that many new circumstances have emerged in the international situation since the beginning of this year, which deserve high vigilance. First is new development of hegemony and power politics, setting a sharp contrast to the world multi-polarization trend; second is the "neo-interventionism" dished out by US-led NATO, which clings to the Cold War way of thinking on the question regarding international peace and safety, and pursues a new gun-boat policy; third is a small number of Westerners push through a new economic colonial policy in an attempt to turn economic globalization into Americanization and to obstruct the establishment of a new international economic order characterized by equality and mutual benefit. The general domestic situation is good, but some deep-rooted contradictions have gradually come to light, which urgently need to be properly resolved. In view of the new development in the current international and domestic situation, we must have a clear understanding of the situation and seize the opportunity to develop ourselves.

The participants made an in-depth analysis of the content of the Decision from many aspects, thinking that the Decision has undergone new developments in a series of important issues concerning promotion of the reform and development of SOEs. They can be summed up as the following main points: First is new enhancement in understanding. The Decision further stresses that SOEs are the pillars of the national economy, the reform and development of SOEs affect the country's long-term peace and stability, the consolidation of the socialist system and China's future and destiny in the next century. Second is new requirement in regard to objective. On the basis of the objective set down at the 15th National Congress of the CPC and at the First Plenary Session of the 15th CPC Central Committee for the reform and freedom of SOEs from difficulties in three years, the Decision sets forth for the first time the medium- and long-term goals for the reform and development of SOEs, and organically combines the short-term target with the medium- and long-term goals, thus pointing out the orientation for the reform and development of SOEs. Third is new theoretical development. The Decision systematically sets forth 10 important principles for the reform and development of SOEs, defines the corporate management structure as the core of the corporate system, as well as a number of new ideas. Fourth is new strategic positioning. The Decision puts forward for the first time the principle of going forward at one time and backward at other time and having some things done and other things undone, clearly defines the scope of the important trades and fields under State control, and the tenet and larger scope for freeing and invigorating small and medium-sized enterprises. Fifth is new move in regard to policy, the Decision puts forward various measures for improving the asset-liability structure of SOEs and reducing their social burdens. These new developments and breakthroughs of the Decision show that our Party has reached a new height in its understanding of the law governing the reform and development of SOEs.

Taking "Three-Unswerving Concepts" As Focal Points of Theoretical Publicity and Guidance

The participants emphasized that the focal point in publicizing the spirit of the Fourth Plenary Session of the 15th CPC Central Committee is to unify the thinking of the cadres and the masses in general with the "three-unswerving concepts" emphasized by Comrade Jiang Zemin.

First, we must unswervingly persist in emancipating the mind and seeking truth from facts, encourage active exploration and engage in bold pioneering work. To really accomplish this, we must stick to the following four points: 1) Persistently doing everything from the reality of the primary stage of socialism. In studying and comprehending the series of major guidelines and principles concerning the reform and development of SOEs, we must base ourselves on this basic proposition. 2) Adhering to the Marxist basic theory on the dialectic relationship between productive forces and the relation of production. 3) Persistently taking practice as the sole criterion for testing truth, and 4) Persistently taking the realistic attitude of making concrete analysis of concrete issues and giving concrete treatment to concrete enterprises.

Second, we must unswervingly uphold the basic economic system at the primary stage of socialism in which we take public ownership as the mainstay and allow the common development of all economic sectors of other types of ownership. In the primary stage of socialism, developing the economic sectors of all types of ownership is conducive to enhancing the State's economic strength and consolidating the political power of the socialist country. Developing non-publicly owned economies does not at all mean practicing privatization.

Third, we must unswervingly persist in deepening the reform and establishing a modern enterprise system.

To do a good job in publicizing the spirit of the Fourth Plenary Session of the 15th CPC Central Committee, we must strengthen purposefulness.

We must pay attention to dialectics. We should correctly understand and handle some major aspects of relationship in the reform and development of SOEs.

We must reinforce confidence.

Strengthening Theoretical Study to Make Contribution to Bringing About the Organic Combination of Public Ownership With Market Economy

Participants pointed out that bringing about the organic integration of public ownership with the market economy and setting up a socialist new market economic structure are a major historical issue, as well as an unprecedented, great creation. The theoretical front bears major responsibility for fulfillment of this great, historic task.

Many participants emphasized that theoretical workers should strengthen study and make contributions to improving the socialist market economic theory.

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