The Central Economic Conference was held in Beijing between December 9 11,1997.

The conference pledged to complete the crucial stage in restructuring of the state-owned Enterprises in order to improve the managerial status of state firms.

The conference noted that the reform of state enterprises is regarded as the key to the nation's overall economic restructuring drive, and stressed that the pressing task of current economic work is to restructure and develop state firms.

The 15th Party Congress's targets for restructuring state-owned enterprises included:

1. Enabling the majority loss-making medium-to-large-sized state-owned enterprises escape current difficulties within three years;

2. Enabling the majority of the large and medium-sized state-owned back-bone enterprises to initially adopt a modern enterprise system by restructuring, regrouping, carrying out renovations and reinforcing management.

In 1998, the textile industry is expected to record major breakthroughs in efforts to establish a modern enterprise system for companies to substantially improve the management of various state enterprises, according to the conference.

The conference called for active efforts to strategically regroup state firm by attaching greater attention to larger firms and relaxing controls on smaller enterprises.

A number of large enterprise groups will be established in various key industries or related sectors through introducing regrouping, mergers, leasing and contracting, according to the conference.

Policies encouraging mergers, bankruptcies, reducing excessive redundancies and reemployment programs will be continued in order to realize mechanisms for competition and reasonable flow of labor.

The conference also pointed out that enterprises should strengthen their sense of competition and risk.

The conference also pledged to reinforce Party leaderships of enterprises, urging them to serve as the core and persist in the principle of relying on the working class. It also called for restructuring the government to realize the separation of government and enterprises introduce efficient supervision and operational mechanisms for the state properties; and accelerate and improve the social security system.

The conference called for taking advantage of the current favorable domestic and international situation to accelerate structural readjustments to the economy, and stressed that the roles of market and industrial policies should be strengthened in order to improve the efficient use of resources.

The strategy to reinvigorate the nation by developing science and education should be implemented with all due seriousness, and full support should be given to pillar and hi-tech industries, according to the conference.

The conference called for current structural economic readjustments to be combined with the accelerated development of backward areas in central and western parts of the country.

It specifically called for developed areas in eastern China to accelerate industrial upgrades, while relocating less advanced industries to central and western regions.

Reform of the investment and financing systems should be accelerated by separating the government from enterprises, and establishing strict responsibility mechanisms to prevent financial risks and redundant operations.

The conference pledged to further introduce and improve macroeconomic control in order to create a more favorable environment for reform and development.