Greater transparency

Updated: 2014-08-20 07:11

(China Daily)

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This year marks the 110th anniversary of the birth of Deng Xiaoping, as well as the beginning of comprehensively deepening reforms which were laid out by the Third Plenary Session of the 18th CPC Central Committee. Being a decisive move in the rejuvenation of modern China, the reform and opening-up initiated by Deng over three decades ago has proved to be the sole and only way to revive the country in the long run., Aug 19

Despite its success in other areas, reform of many Chinese State-owned enterprises has failed to bridge the income gap between their laid off workers and current employees: the former can barely make ends meet while the latter have enjoyed a sharp increase in salary. The authorities are determined to put an end to such unfairness by seeking to regulate unreasonably high incomes. The ultimate aim of income distribution reform is to establish a well structured, regulated, and supervised distribution of wealth in State-owned enterprises, instead of merely prohibiting high incomes of some individuals.

Xinhua Economy Spotlight, Aug 19

This year's plan for reform of the payment system for executives of major SOEs puts more specific restrictions on the self-interests of corporate executives, and is likely to further advance the reform from the top down. However eagerly the rest of society may await the subsequent breakthroughs, some executives might still be able to exploit loopholes in supervision and acquire "gray incomes" such as the calligraphy and paintings by well-known artists. Hence, stricter supervision, including a transparent salary system, is also needed.

The Beijing News, Aug 19

The fact that top executives of major SOEs are even better paid than their counterparts in private firms, is a grave affront to the image of the central government and social justice as well. Privileged executives such as Chen Tonghai, the former Sinopec chairman convicted of corruption, reportedly squandered more than 30,000 yuan ($4,890) of public funds per day, due to the lack of basic restrictions. Thus the reform should attach importance to the transparency, legitimacy, and supervision of the incomes of all SOE executives.

Beijing Youth Daily, Aug 19

(China Daily 08/20/2014 page8)