WUHAN - The Chinese government has ordered state-owned companies to arrange jobs for retired soldiers as the army plans to cut 300,000 troops in the next two years.

The Ministry of Civil Affairs and the State-owned Assets Supervision and Administration Commission jointly distributed a document urging the companies to reserve 5 percent of their total recruitment for qualified veterans, the ministry announced at a meeting on Monday. Authorities will check the number annually, according to the document.

"The settlement of the demobilized soldiers matters to defense and military building as well as social harmony and stability," said civil affairs minister Li Liguo. He said the document is an important step in military reform, as it will help manage former soldiers and attract more elite recruits, boosting combat power.

China has a tradition of transferring qualified veterans to government organs or enterprises to support their life out of the army. Others will get a considerable compensation based on the duration of their service.

President Xi Jinping announced a cut of 300,000 troops during a Victory Day speech in September.

"All state-owned companies have the responsibility and obligation to accept and settle veterans," the document said. "Companies directly under the central government should take the lead and guide other companies to implement."

Companies are never allowed to issue any documents deemed discriminatory towards retired soldiers, and can not refuse to receive them or use them as contracted laborers, the documents warned.