Dec. 27, 2004 Ha'erbin is a traditional industrial center in northeast China. But in recent years, lots of industrial enterprises in Ha'erbin have to face a great finacial deficit, because the stateowned/private enterprises' ratio was too high; so many system problem existed. As a result, there were 72 industrial enterprises, about 32.4 percent of all enterprises in Ha'erbin, lose and the deficit of these enterprises totaled RMB553 million. At the beginning of 2004, a large scale of reformation was implemented among the industrial enterprises in Ha'erbin. Detailed measures of the reformation included shrinking company organization and cutting unnecessary subsidiary; focusing on the advantage products. So far the reformation has began to take effect.