How does the reform of the agricultural reclamation system advance from two levels?

“To deepen the reform of the agricultural reclamation system, it is necessary to advance reform at two levels as early as possible: first, to advance the reform of the state-owned property rights system in the reclamation areas; and second, to advance the reform of the management and operation system of agricultural reclamation enterprises. This will determine the overall approach to the reform and development of the reclamation areas.” said Li Yining, honorary dean of the Guanghua School of Management at Peking University and a renowned economist.

The 5th China Sustainable Development Forum for Poverty-Stricken Areas was held on the 5th at the Jiansanjiang Administration of Agricultural Reclamation in Heilongjiang Province, where Li Yining made the above remarks. It is understood that at the end of January this year, the Agricultural Reclamation Bureau of the Ministry of Agriculture and the Management Science Research Center of Peking University jointly launched a research project on major strategic issues in agricultural reclamation reform and development, with Professor Li Yining serving as an advisor to the research team.

⟦NL> Li Yining stated that to deepen the reform of the agricultural reclamation system, it is necessary to establish a state-owned asset investment company as early as possible, responsible for preserving and increasing the value of state-owned assets in the reclamation areas, increasing or reducing holdings, and effectively shouldering the task of properly utilizing and managing state-owned capital. It is necessary to advance the reform of the management and operation system of agricultural reclamation enterprises and establish agricultural reclamation group companies that operate independently, where investors bear their own profits and losses, property rights are clearly defined, and multiple investment entities hold shares.

Li Yining also suggested that the restructured agricultural reclamation group companies establish a parent company——subsidiary company system in accordance with the modern enterprise system, abolish the previous administrative management system in which higher-level companies managed lower-level companies, and establish a vertical corporate system of “group company——professional subsidiary——production base”.

“Agricultural reclamation group companies are mixed-ownership enterprises. Both the parent company and subsidiaries should establish sound corporate governance structures. Their relationship is one of capital investment, not administrative subordination.” said Li Yining.