China must quicken transformation in the growth pattern and adopt the strategy of "large corporation, large enterprise group", so as to maintain overall, coordinated and sustainable development, says Li Rongrong, Chairman of the State Asset Management Commission at the China Enterprise Summit 2004 in Beijing on Sept 15.

China's economic growth pattern is still the one featuring high input, high consumption, high exhaust, low output and low efficiency. With rapid economic growth, lack of resources, pressure in environmental protection has grown increasingly notable. To speed up strategic adjustment to China's economic structure and transformation of economic growth pattern, China must endeavor to implement the strategy of "large corporation and enterprise group".

Being pillar of a country's economic development, large corporations and enterprise groups are backbone for technology upgradation, industry upgradation and restructuring. Nowadays transnational corporations possess 70 percent of patented technology, 90 percent of technology trade, 70 percent of commodity trade and 90 percent of transnational investment. Their influence to world economy, society and culture can hardly be estimated.

In recent years China has made progress in implementing the strategy through deepening reform, restructuring and going public, mergers and requisitions. The number of Chinese enterprises in global top 500 has risen from 3 in 1995 to 17 in 2004.

In general, there is still a huge gap between the large corporations and enterprise groups of China and their foreign counterparts no matter in terms of quality, size and profits, or in terms of ability to make profit, to innovate and management. Fostering a batch of large corporations and groups with international competitiveness is a strategy that is related to China's economy and social development. It is also an important objective for Chinese enterprise reform.

Expanding the business scope is an important measure for enterprises to seek existence and grow. To adapt to the international environment and globalization, to adapt to new conditions for building an affluent society , China will accelerates the reform in SOEs and strives to foster a batch of large corporations and enterprise groups.

By People's Daily Online