Although Shanghai is considered a relatively “advanced” city in terms of reform of its  state-owned enterprises (SOEs), in fact it is relatively backward.  During the 1990s Shanghai basically relied upon foreign investment to create new competitive industries and to spur economic growth.  Shanghai’s SOEs were hardly touched by the reformist storm that swept many other provinces.
上海は国有企業改革の面で相対的に｢先進的｣とみられてきたが、実際にはむしろ｢後進的｣である。1990年代を通じて上海は、基本的に外国資本に依拠して新しい競争的工業を創出し、経済成長を加速してきた。上海の国有企業は、他の多くの省市では吹き荒れた改革の嵐にほとんど触れてこなかった。

But it seems that things are now changing.  The change was announced at a meeting of the Shanghai Municipal State Owned Asset Commission  (上海市国有资产管理委员会) on March 23 of this year.  At that a meeting Party Secretary Chen Liangyu 陈良宇 admitted that when the first state owned holding company was established in Shanghai in 1993 “we underestimated the difficulty of reforming SOEs.” 
しかし、いまや事態は変わりつつある。2004年3月23日、上海市国有資産管理委員会の会議で改革が公表された。この会議で上海市党委員会書記陳良宇は、次の事実を認めた。すなわち1993年に樹立された最初の｢国家控股公司｣は｢国有企業改革の難しさを過少評価してきた｣と。

Chen recalled that in 1993 19 industrial bureaus工业管理局under the Shanghai government were reorganized into over 50 (later consolidated into 39) holding companies 控股公司 and enterprise groups企业集团.  This reform was considered important to the extent that it created an a clear “owner” and capital provider 出资人.  However, Chen noted, since then there has often been little progress.  Most the SOEs continue to operate in bureaucratic style with poor financial results. 

In 2003, as Beijing launched a national initiative to reform and restructure SOEs, Shanghai found itself far behind other localities in having a strategy for and actually achieving results in SOE reform.  Since then, Shanghai’s Party and Government leadership have vested new authority in the city State Assets Commission 市国资委.  Most significantly, the commission is empowered to act exclusively as the capital provider to the enterprises, exclusively represent the ownership interests of the city, and exclusively to manage the assets and personnel issues of the enterprises.  In the words of Mayor Han Zheng 韩政: “市国资委代表.市政府履行出资人职责，享有所有者权益，实行权益义务和只能的统一，管资产和管人管事相统一.”

The city’s plan is to implement fundamental reforms in SOEs during the next three years.  The objective of the reforms is to transform the SOE companies into modern, competitive enterprises, or, if this is not possible, to merge, sell, or close them.   Two recent examples of reform are the merger of Bailian 百联 and Jiajiang 锦江groups as well as the restructuring of the Shanghai Electric Group上海电气集团 .In the reform process, the policy is to accept, indeed to welcome, foreign investment.  Thus, foreign investors, including investors from Japan, should look carefully at potential opportunities with these companies.

Shanghai’s SOEs contribute a significant part of Shanghai’s industrial output and employ a large number of workers, both skilled and unskilled.    In 2002 the value of Shanghai’s SOE assets totaled some Rmb 570 billion.  Operating assets exceeded Rmb 400 billion.  SOEs were active in 85 industrial sectors, and were losing money in 23 sectors.  Losses amounted to some Rmb 50 billion (source: 21世纪经济报道2004,3,29).  A newspaper 21世纪经济报道 cites a document, 国有资产调整规划 that 55% of Shanghai’s SOEs occupy normal competitive areas.  The objective to the reform is, by 2008, that 80% of SOE activity will be in the service sector, particularly those areas that are government monopolies like security and public services, and in key enterprises in pillar industries. 

The following is a list of 36 SOEs subordinate to the Shanghai State Assets Commission.  上海资委归口管理的国有大型控股企业名单

上海百联(集团)有限公司

上海水产(集团)总公司

上海轻工控股(集团)公司

上海广电(集团)有限公司

上海建筑材料(集团)总公司

长江计算机(集团)公司

上海市农工商(集团)总公司

上海久事公司

申能(集团)有限公司

上海申通(集团)公司

上海城市建设投资开发总公司

上海纺织控股(集团)公司

上海仪电控股(集团)公司

上海电气(集团)总公司

上海汽车工业(集团)总公司

上海华誼(集团)公司

上海医药(集团)有限公司

上海市机械设备成套(集团)有限公司

上海有色金属(集团)有限公司

上海光通信公司

上海电器科学研究所(集团)有限公司

上海良友(集团)有限公司

上海糖业烟酒(集团)有限公司

上海外经(集团)有限公司

东方国际(集团)有限公司

上海兰生(集团)有限公司

锦江国际(集团)有限公司

上海东浩国际(集团)有限公司

上海大盛资产经营有限公司

上海盛融投资有限公司

上海国有资产经营有限公司

上海市衡山(集团)公司

上海联和投资有限公司

上海华虹(集团)有限公司

上海市蔬菜(集团) 有限公司

上海市锦江航运有限公司

A few months ago the author visited上海水产(集团)总公司.  This company is in the very attractive fishery sector, and has a virtually monopoly on fishing and fish marketing in Shanghai.   I was amazed to find that this company had not yet even restructured itself under the “company law.”  It was still being run like a traditional SOE.  But the general manager told me that he was now under pressure to truly before the process of “corporatization” and reorganization. 

上海水产(集团)总公司 is looking forward foreign investors.  Japanese companies seeking to enter China’s fish market should be carefully following this company’s restructuring, and also making contacts.