The vice-premier made the comment during a recent tour of Henan Province in central China, during which he inspected several local factories and was briefed by the provincial government officials on state-owned enterprises reforms and other key issues.

Wu stressed that the adjustment and upgrading of industrial enterprises is a key point of China's economic restructuring during the 10th five-year plan period from 2001 to 2005.

The country must give priority to upgrading traditional industries with advanced technologies and the development of information technology, bioengineering, new materials and other high-tech industries, the vice-premier said.

He noted that support must be extended to old industrial bases so that they can fully utilize their infrastructure and technological resources to form new advantages.

Wu emphasized the importance of establishing a mechanism to ensure enterprises producing shoddy products, wasting resources, causing severe pollution, failing to meet safety standards to be expelled from the market.

He called for bold reforms in state-owned enterprises for the establishment of a modern corporate system that will beef them up for tougher competition following China's expected accession to the World Trade Organization.

(Xinhua 03/26/2001)