Senior Chinese official urges SOE reforms, innovation

Chinese state councilor Wang Yong visits China South Locomotive and Rolling Stock Corporation Ltd. (CSR) in Beijing, capital of China, May 29, 2014. Wang made an inspection tour to some central enterprises in Beijing on May 27 and 29. (Xinhua/Liu Weibing)

Chinese State Councilor Wang Yong has urged the country's centrally administered state-owned enterprises (SOEs) to step up reforms and innovation to take a leading role in stabilizing the economy.

During a recent research tour of several centrally administered SOEs, including Datang Telecom and China National Building Materials Group, Wang asked them to take the initiative to roll out effective measures to stabilize growth.

Centrally administered SOEs, as the backbone of the economy, should prioritize efficiency, and improve management to avert possible risks and big fluctuations, Wang said.

The enterprises should deepen reforms to clear the institutional barriers that hamper growth, and step up innovation to enhance their core competitiveness, he added.

China has 113 centrally administered SOEs. In the first four months of the year, their profits amounted to 576 billion yuan (93 billion U.S. dollars).