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Those changes include the privatizing of state-owned industries and opening the economy to foreign investment.

Only 28 percent of state-owned industries make a profit, according to a recent survey.

By the early 1990s most of the remaining state-owned industry will have been sold to the private sector.

The problem instead lies in the methods used by the state-owned industry to make and distribute bread.

He also said some state-owned industries would have to be shut down or restructured.

More money was coming in from privatization of state-owned industries.

But most important, it would allow some of China's state-owned industries to accept private investments.

In China, the problem lies in the old state-owned industries.

They remain oriented toward their traditional customers, the large and troubled state-owned industries.

All told, the number of state-owned industries went down from approximately 1,155 in 1982 to 412 in 1988.

As a result, the companies to be privatized now represent only about 6 percent of state industry, he said.

Nearly every major state industry is now headed by a senior government official.

In 1992 the voters rejected a referendum to sell off state industries.

But if the state industries can raise their own money, can anyone really then tell them what to do with it?

Shares in some state industries have been offered to employees.

The policy has been the cornerstone of China's efforts to revive state industry over the past five years.

The Government is selling all of its state industries, which were losing $5 billion a year.

This would mean selling about one-third of Brazil's 188 state industries.

Funds for the measure would come from selling off state industries, they said.

The province has seen a decline in state industry from 2000 to 2007.