Sheng Huaren, minister in charge of the State Economic and Trade Commission, said Monday at a national working conference that China will "promote readjustment of the economic restructure next year and in the years to follow to upgrade the industrial sectors."

"Irrational economic structure has become an outstanding problem that hampers the country's economic development at the present stage, and will have a negative impact on China's participation in global competition," Sheng noted.

China plans to establish in the next three to five years 50 to 100 giant state-owned enterprises, which will be the pillar of the national economy, Sheng disclosed.

To achieve this goal, China is to step up the reform of SOEs by establishing a joint-stock system and encouraging large enterprises to raise funds on the domestic and overseas stock market.

The government will provide a favorable environment for innovation and help enterprises establish their own research and development centers, he said.

Meanwhile, some ailing state-owned enterprises will be shut down through bankruptcy and closure.

During the 10th Five-Year Plan period (2001-2005), China will close down a number of resource-wasting, heavy polluting and non-profiting small plants and depleted mines, Sheng pointed out.

(People's Daily 12/08/2000)