China claims state sector reform success

One of China's top economic planners has said the reform of the country's state sector has achieved preliminary success.

Sheng Huaren, head of the state economic and trade commission said that the number of loss-making large and medium-sized enterprises had been reduced by seventy percent in three years.

But he also admitted that thousands of once-profitable state-run firms had fallen into debt over the past three years and would have to close in the future.

He acknowledged the price of the reforms, saying that at least eight million people had been left unemployed.

Analysts say that China's remaining state industries will face tough challenges after the country's accession to the World Trade Organisation leads to further steps to open the Chinese market.

From the newsroom of the BBC World Service