In important industries and priority fields, the establishment of large enterprise groups should be encouraged in order to increase their competitiveness in both domestic and foreign markets. In boosting enterprise groups, we should persist in taking the market as our orientation, break departmental, regional and ownership barriers, and support association between strong enterprises so that they will take advantage of each other's strengths. In accelerating the reorganization and readjustment of state-owned enterprises, we should encourage strong enterprises to merge with difficulty-ridden ones so as to make more efficient use of resources. We should declare bankrupt according to regulations those loss-making enterprises whose long-time difficult situation is unlikely to end. Government at all levels should be concerned about and support the effort of redirecting surplus employees of enterprises to improve business efficiency.

要積極穩妥地進行股份制和股份合作制的改革。對具備條件的大中型企業實行規范的公司制，根據市場情況，允許一些企業上市發行股票。企業改制要真正轉變經營機制，實行政企分開，明確國家和企業的權利和責任，完善內部管理制度，防止國有資產流失。要采取從改組、聯合、兼并、租賃、承包經營和股份合作制、出售等形式，加快搞活國有小企業的步伐。要把經營自主權真正放給企業，實行自負盈虧，使小企業能夠更加靈活地適應市場。

Reform will take place actively and steadily in matters concerning the establishment of the joint share system and the joint stock cooperative system. We shall corporatize large and medium-sized enterprises in a standard way where conditions permit, allowing some enterprises to be listed and issue stocks in accordance with market conditions. In the reform of enterprises, we shall overhaul their operational procedures, separate government functions from enterprise management, and delineate the rights and responsibilities of the state and enterprises.

Meanwhile, we should improve the internal management system and prevent the devaluation of state assets. We should accelerate the pace of relaxing control over small state-owned enterprises and invigorating them by way of reorganization, association, merging, leasing, contract operation, the joint stock cooperative system and sell-off. We should make sure that the right to independent operation is delegated to small enterprises so that they can be responsible for their own profits and losses and adapt themselves to the market in a more flexible way.

企業管理部門要轉變觀念，使生產經營和內部管理適應市場的要求。在任何時候都要重視加快技術進步和新產品開發。要不斷調整產品結構，加強市場營銷，改善售后服務，降低成本，提高質量，增強競爭能力。

The management of enterprises should change their outdated way of thinking so that production, operation and internal management can meet the needs of the market. At any time, importance must be attached to the work of speeding up technological progress and developing new products. We must readjust the product mix on a regular basis, improve marketing and after-sale services, reduce production cost and upgrade quality, so as to become stronger competitors in the market.