China to let up to 3,000 state enterprises go bankrupt
Posted: 10:50 AM | Jul. 30, 2003
Agence France-Presse
BEIJING -- China will allow up to 3,000 state-owned companies to go bankrupt in the next five years, including a large number of enterprises run by the military, state media said Tuesday.
The companies slated for bankruptcy are mainly in "sunset industries" and have suffered losses because of poor management and outdated technologies, the China Business Weekly newspaper reported.
They include more than 200 military-related enterprises, the newspaper said, quoting an official with the State-Owned Assets Supervision and Administration Commission.
Since 1995, 7,798 state-owned enterprises (SOEs) have gone bankrupt, but a staggering 159,000 still remain in business, according to the paper.
Many of the companies subtract value from the Chinese economy, as the products they make are worth less than the input that goes into their manufacture.
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