From state-owned enterprises is not the protagonist of the two associations

At least after the reforms, state-owned enterprises are the protagonists of the two sessions each year. But this year it is not. The most obvious example is that there was no press conference on state-owned enterprises this year. Premier Wen’s report on government work also confirmed this point—the report did not focus on state-owned enterprises as a topical monograph as before, nor did it mention “grabbing big and small” and “bigger and stronger”. The only issue concerning state-owned enterprises is also expressed in this way: This year the government will “increase the reform of state-owned sole proprietorship enterprises and monopoly industries, relax market access, promote investment entities and diversify property rights...”

State-owned enterprises are not the protagonists of the two conferences this year. People have two kinds of analysis. One is optimistic. It is believed that the “fade out” of state-owned enterprises from the positions of the protagonists of the two associations means that the issue of state-owned enterprises is no longer a problem. Since most of the reforms have already been implemented, there will be more than 100 "central enterprises" directly under the SASAC, and sooner or later, property rights reforms will be carried out. As long as we follow the reform roadmap that focuses on the reform of the property rights system, traditionally state-owned enterprises must eventually be integrated into the “enterprise”.

The other type is pessimistic. It is believed that a large number of social problems accumulated during the decades of state-owned enterprise reforms have forced the central government to slow down the pace of state-owned enterprise reforms and re-energize efforts to solve social stability problems. Some even think that China’s reform policy will change.

This is not alarmist. At the first People’s Congress’s press conference this year, a French weekly journalist asked whether the Chinese leaders are now considering changing the socialist ideology with Chinese characteristics. Jiang Enzhu, spokesperson of the People’s Congress, immediately denied it.

If the answer of Jiang Enzhu is viewed as an official statement, then digital China may be more convincing. Before 1978, China was a relatively isolated, poor, and backward country that did not participate in international trade. Today, according to statistics from relevant state agencies, according to the PPP (purchasing power parity) calculation, China has become the second largest economy in the world and the fourth largest trading country in the world. Last year, China’s GDP grew by 9.9%. It has surpassed Italy in terms of market exchange rate, and may exceed France and the United Kingdom in the next few years. China surpassed Mexico and became the second largest exporter to the United States. In 2002, the growth of China’s foreign trade accounted for almost half of the net increase in world trade. China is now the second largest economic entity in Asia (according to market exchange rates) and is the most dynamic entity. In 1978, only Deng Xiaoping could predict that China's economy will change, but perhaps Deng Xiaoping himself also underestimated the speed of China's economic growth.
From these figures, we can't find a reason why China should change its reform policy, and of course we can't find a reason to stop the reform of the state-owned enterprises. Now only if these numbers continue to increase and increase, will we be able to solve a series of social stability problems and be able to make the lives of all people better.
In the face of this test, the Party Central Committee with Hu Jintao as its general secretary also made a clear statement. Premier Wen said in his report: “The reform and opening up is a major decision that determines the fate of China. At present, reform is at a critical stage, and we must accelerate our reforms with greater determination. This year we must make new progress in major institutional reforms that have an overall relationship.” On the afternoon of March 6, General Secretary Hu Jintao clearly pointed out during the deliberations of the Shanghai delegation: “We must unwaveringly adhere to the direction of reform and further strengthen our determination and confidence in reform.”

The two statements by General Secretary Hu and Premier Wen Jiabao indicate that even if there are many discussions, even if there are many difficulties, China’s reforms and opening up will not be stagnated. Instead, they can only insist on reform to resolve conflicts and promote harmony.

This, we are relieved.

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