China re­forms SOE salary-set­ting mech­a­nism

China's Foreign Trade (English) - - Briefing -

China’s cabi­net has de­manded a re­form of the salary-set­ting mech­a­nism for state- owned en­ter­prises (SOES) to in­crease their ef­fi­ciency.

Au­thor­i­ties should es­tab­lish a salary­set­ting and growth mech­a­nism that is suited to the la­bor mar­ket and is linked to the SOE’S eco­nomic per­for­mance and la­bor pro­duc­tiv­ity, ac­cord­ing to guide­lines is­sued by the State Coun­cil.

The guide­lines state t hat t he work should fo­cus on “in­creas­ing the vi­tal­ity and ef­fi­ciency of SOES”.

The to­tal amount of salaries for SOES should be bet­ter de­ter­mined ac­cord­ing to their per­for­mance, and man­age­ment of the com­pa­nies’ in­ner salary dis­tri­bu­tion should be im­proved.

The guidel ines also ex­pressed that “over­sight of the SOE salary dis­tri­bu­tion should be strength­ened, state cap­i­tal should be sup­ported in be­com­ing stronger, do­ing bet­ter and grow­ing big­ger, and in­come dis­tri­bu­tion should be more rea­son­able and or­derly”.

China has pushed for SOE re­forms, in­clud­ing mixed-own­er­ship re­form and cor­po­rate re­form, to in­ject vi­tal­ity into a large num­ber of pre­vi­ously un­der­per­form­ing en­ter­prises.

prov­inces and in Tian­jin will fo­cus on high qual­ity de­vel­op­ment, sup­ply- side struc­tural re­form, in­sti­tu­tional in­no­va­tion and risk pre­ven­tion, ac­cord­ing to a doc­u­ment re­cently re­leased by the State Coun­cil.

Ren Hong­bin, As­sis­tant Com­merce Min­is­ter, ex­plained that the zones will be given greater de­ci­sion-mak­ing pow­ers to chart new paths for open­ing- up, im­prove govern­ment man­age­ment and foster new growth driv­ers and a com­pet­i­tive edge.

“The move shows that China will con­tinue its steps to open the lo­cal mar­ket, es­pe­cially in the fields of for­eign in­vest­ment man­age­ment, trade fa­cil­i­ta­tion, fi­nan­cial in­no­va­tion and the trans­for­ma­tion of govern­ment func­tions,” said Xu Hong­cai, an econ­o­mist at the China Cen­ter for In­ter­na­tional Eco­nomic Ex­changes.

The deep­en­ing re­form and open­ing- up of the free-trade zones is one of the con­crete steps that China is tak­ing to im­prove the busi­ness en­vi­ron­ment and fa­cil­i­tate global trade, said Wei Jian­guo, a for­mer ViceMin­is­ter of Com­merce.

Con­struct­ing An In­vest­ment and Fi­nanc­ing Sys­tem with Con­trol­lable Risk and Shared In­ter­ests for the Belt and Road Ini­tia­tive

56 Youth Brim­ming with In­no­va­tive Cre­ations 58 — Show Town·china Grad­u­ate Fash­ion Week 57 2018 Green Broth­ers Win­dow De­sign Con­test for Chi­nese

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.