More than two-thousand managers of state-owned firms in China are reported to have been sacked or demoted in one province this year having lost the confidence of their workforce.

The China Daily newspaper said the bosses, in the north-eastern province of Liaoning, lost their jobs after failing to win the support of at least sixty per cent of their employees.

Correspondents say managers of state enterprises are increasingly being blamed for the poor performance of their companies and officials see democratic appraisal as the key to successful reform -- but others say it it's simply a means of reducing anger among employees facing the sack.