"The cheap cost of coal led to over-reliance by some enterprises. Coal is our major resource, but we must make the market play a bigger role in marketization," he said.

In the Government Work Report he presented March 5, Premier Li Keqiang echoed a November pledge by the central government to let in more market forces, saying the country will reform the pricing of resource products.

Yuan added that the provincial government also plans to step up reforms of State-owned enterprises, letting in more public-private ownership. The province has the fifth-largest number of SOEs in China, with total assets of more than 1.3 trillion yuan.

"A reduction of 20 percent ownership from the State-owned enterprises will bring the government an income of about 70 billion yuan, which can be used for improving livelihoods" in the region, Yuan said.

"What's more, the provincial government also will accelerate the transformation of government functions, streamline investment approvals and reduce the time needed for the approvals. Meanwhile, the government will strengthen market supervision to create a more level playing field," he added.

Li Xiaobo, chairman of Taiyuan Iron and Steel Corp, said the promotion of mixed ownership in the SOEs will help rejuvenate these businesses. He also called for reforms of the internal management of the enterprises.

Liu Jianzhong, chairman of the Shanxi Coal Transportation and Sales Group Co Ltd, said achieving the goal of mixed ownership lies in the establishment of a modern corporate structure and governance, as well as an internal risk management system and motivation mechanisms.

Sun Ruisheng contributed to this story.

 

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