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Rural economy growth targeted
http://www.sina.com.cn 2003/11/14 13:33  Shanghai Daily

  The Chinese government will reinforce efforts to accelerate the development of companies engaged in agricultural business in an effort to spur rural economy, said senior officials of agriculture administration in Beijing yesterday.

  These companies will receive more support from the government as the industrialization of rural areas holds a very important position in the central government's blueprint of agricultural development, said Du Linqing, minister of agriculture, at the opening ceremony of the First China AG Trade Fair in Beijing.As one of the efforts to stimulate rural development, the fair provides a chance for companies to enhance links with clients both at home and abroad, said Du.

  By the end of 2002, the nation had about 94,000 agricultural companies that deal with planting, processing, transporting or transaction, which means a 41.6 percent rise from 2000.

  Among the 94,000 firms, 372 are national key corporations with a leading position in their own realm and, on average, each boasts around 250 million yuan (US million) of capital assets and 710 million yuan of sales volume.

  Most of the key corporations are in good operation with clear ownership and fine management and will have more influence on the rural economy, said Fan Xiaojian, deputy minister of agriculture.

  However, the performance of the majority of agricultural companies is not so satisfying. The common problem is a lack of effective management and competitiveness, noted Fan.

  According to Fan, the Ministry of Agriculture has suggested that a comprehensive guideline be worked out to include solutions for the development of agricultural companies with consideration to tax policies, financing, technology upgrade, environment protection and other related aspects.




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