"In a weak economy, companies have to cut their expenses. Laying off employees they don't need provides one solution for reducing costs. But our State-owned companies are not allowed to downsize, which has burdened the companies and deterred reform of State-owned companies."

Huang Shuhe, member of the National Committee of the Chinese People's Political Consultative Conference and vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council, as quoted by caijing.com.cn Thursday.