Order of the State Council on Issuing the Tentative Measures for the Supervision and Administration of State-Owned Assets of Enterprises

Order of the State Council on Issuing the Tentative Measures for the Supervision and Administration of State-Owned Assets of Enterprises

Order of the State Council [2003] No. 378

May 27, 2003

The Tentative Measures for the Supervision and Administration of State-Owned Assets of Enterprises (the Measures), which were adopted at the 8th executive meeting of the State Council on May 13, 2003, are hereby promulgated and shall be implemented as of the day of promulgation.

Premier :Wen Jiabao

Appendix: Tentative Measures for the Supervision and Administration of State-Owned Assets of Enterprises

Chapter I General Provisions

Article 1 The present Measures are enacted in order to establish a supervision and administration system of state-owned assets that meets the demand of the socialist market economy, to further activate the state-owned enterprises, to promote the strategic adjustment of the layout and structure of the state-owned economy, to develop and strengthen the state-owned economy, and to try to maintain and increase the value of the state-owned assets.

Article 2 The present Regulations shall apply to the supervision and administration of the state-owned assets in the state-owned, state-controlled, and state-held enterprises. The present Regulations shall not apply to the supervision and administration of the state-owned assets in financial institutions.

Article 3 State-owned assets in enterprises as mentioned in the present Regulations refer to the State's various forms of investment and the rights and interests formed thereby, as well as other rights and interests recognized as being state-owned according to law.

Article 4 The state-owned assets in enterprises belong to the State. The State shall apply the administration system of state-owned assets in which the State Council and the local people's governments shall, on behalf of the State, perform the contributor's duties and enjoy the owner's rights and interests, the rights shall be associated with the obligations and responsibilities, and the administration of assets shall be combined with the administration of personnel and affairs.

Article 5 The State Council shall, on behalf of the State, perform the contributor's duties for the large state-owned, state-controlled, and -held enterprises that have bearings on the national economic lifeline and state security, and the state-owned, state-controlled, and state-held enterprises in the fields of important infrastructure and important natural resources etc. The State Council shall determine and promulgate the list of the enterprises for which the State Council will perform the contributor's duties.
The people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government, and the people's governments at the level of city districts and autonomous prefectures shall, on behalf of the State, perform the contributor's duties for the state-owned, state-controlled, and state- held enterprises other than those for which the State Council performs the contributor's duties. Among which, the state-owned, state-controlled, and state-held enterprises that for which the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government perform the contributor's duties shall be determined and promulgated by the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government, and shall be put on record with the state-owned assets supervision and administration body under the State Council; other state-owned, state-controlled, and state-held enterprises for which the people's governments at the level of city districts or autonomous prefectures perform the contributor's duties shall be determined and promulgated by the people's governments at the level of the city district or autonomous prefecture, and shall be put on record with the state-owned assets supervision and administration bodies of the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government.
The enterprises for which the State Council, the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government, and the people's governments at the level of city districts or autonomous prefectures perform the contributor's duties shall be generally referred to as the contributed enterprises.

Article 6 The State Council, the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government, and the people's governments at the level of city districts and autonomous prefectures shall respectively set up state-owned assets supervision and administration bodies. The state-owned assets supervision and management bodies shall perform the contributor's duties according to law and supervise and administer the state-owned assets of the enterprises.
The city districts and autonomous prefectures with relatively few state-owned assets in enterprises may not be required to set up separate state-owned assets supervision and administration bodies upon approval of the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government.

Article 7 The people's governments at various levels shall strictly execute the laws and regulations on the administration of state-owned assets, shall adhere to the separation of the government's function of administration of public affairs and the function as the contributor of state-owned assets, and adhere to the separation of government bodies and enterprises and the separation of ownership and management power.
The state-owned assets supervision and administration bodies shall not exercise the government's function of administration of public affairs, and the other bodies and departments of the government shall not perform the duties of the contributor of state-owned assets in enterprises.

Article 8 The state-owned assets supervision and management bodies shall, in accordance with the present Regulations and other relevant laws and administrative regulations, establish and perfect the internal supervision system, and strictly enforce the laws and administrative regulations.

Article 9 In case of war, serious natural disaster, or other major and emergent situations, the State may allocate and dispose of the state-owned assets in enterprises in a unified way according to law.

Article 10 The contributed enterprises and the enterprises invested in and established thereby are entitled to the right to autonomy in business operations.
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