Since the 18th National Congress of the Communist Party of China, General Secretary Xi Jinping has published a series of important statements on the reform and development of state-owned enterprises, which has pointed out the direction for the reform and development of state-owned enterprises and put forward all-round new requirements. State-owned enterprises are the pillars of the socialist economy with Chinese characteristics and play an important role in scientific and technological innovation, industrial leadership and security support. The reform of state-owned enterprises is a key measure to enhance the international competitiveness of state-owned enterprises and promote high-quality national economic development. It is of great significance to building a new system of an open economy and achieving the country's long-term development goals. It will play an important leading role in advancing Chinese-style modernization and building a great modern socialist country in all respects.

Improving the modern corporate governance mechanism of state-owned enterprises with Chinese characteristics is the mission and responsibility of realizing Chinese modernization. Chinese-style modernization is a major achievement achieved in the long-term exploration and practice of the people of all ethnic groups under the leadership of the Party. The leadership of the Party has a direct bearing on the fundamental direction, future and destiny, and ultimate success or failure of Chinese-style modernization. To improve the modern enterprise system of state-owned enterprises with Chinese characteristics, we must focus on giving full play to the advantages of the socialist system with Chinese characteristics, with the goal of achieving Chinese-style modernization, strengthen the leadership of the Party, improve corporate governance, and encourage enterprises to establish and improve a modern enterprise system with clear property rights, clear rights and responsibilities, separate government functions from enterprises, and scientific management. We will improve corporate governance, give full play to the leading role of SOE party committees (party groups) in setting the direction, managing the overall situation, and ensuring implementation, improve the decision-making mechanism of the board of directors in setting strategy, making decisions, and preventing risks, and improve the level of management in planning, implementing, and strengthening management.

Promoting the construction of a modernized industrial system of state-owned enterprises is the only way to achieve Chinese-style modernization. To strengthen technological innovation as the path, state-owned enterprises actively layout strategic emerging industries and future industries, build a modern industrial system, build a modern industrial chain "chain", and strive to grasp the strategic initiative in global industrial competition. We will accelerate technological transformation and equipment upgrading, comprehensively upgrade China's industrial base and modernize its industrial chain, actively cultivate strategic emerging industries and incubate future industries, accelerate the construction of cluster development advantages, and strive to seize the commanding heights of scientific and technological revolution and industrial transformation.

Focusing on the main responsibility and main business to deepen restructuring and integration is a key measure to deepen the supply-side structural reform of state-owned enterprises. The reform of state-owned enterprises focuses on strategic restructuring and professional integration. On the one hand, it focuses on related industries through professional integration, and carries out in-depth integration of the same or homogeneous business among enterprises to avoid repeated investment and homogeneous competition. On the other hand, through strategic restructuring, the layout of forward-looking strategic emerging industries, and increase investment in next-generation information technology, artificial intelligence, new energy, new materials, biotechnology, green environmental protection and other industries. Reform of state-owned enterprises accelerated the distribution and restructuring of the state-owned economy, with enterprises as the main body, using market-oriented means, highlighting the main business, focusing on industry, paying more attention to becoming stronger and more specialized, and promoting the integration and reorganization of state-owned enterprises.

State-owned enterprises have played an active role in scientific and technological innovation and self-reliance, injecting scientific and technological momentum into the construction of Chinese-style modernization. In recent years, state-owned enterprises have contributed a number of original achievements in basic frontier fields, providing important support for maintaining China's scientific and technological security and energy security, and providing a strong guarantee for the people to enjoy the latest scientific and technological achievements. State-owned enterprises have strong integration capabilities in implementing the national science and technology innovation strategy and cultivating industrial innovation. State-owned "chain long" enterprises highlight strategic orientation, strengthen intrinsic and long-term value, and improve the policy system and institutional arrangements for state-owned enterprises to create original technology sources by improving the resilience and safety level of industrial chain and supply chain. We will strengthen research on basic, urgent, cutting-edge, and disruptive technologies.

State-owned enterprises are an important subject and force of Chinese modernization, which is reflected in strengthening the foundation of Chinese modernization economy. Modern economy needs the support of modern enterprises. As the representative of public ownership economy, state-owned enterprises occupy a dominant position in important industries and key fields that are related to national security and the lifeblood of the national economy. We will strengthen the distribution of state-owned enterprises in key areas, strengthen the control position of the state economy in national defense, military industry, energy and resources, and food supply through market-oriented means, and increase the effective supply of public services in such areas as medical and health care, health and elderly care, disaster prevention and mitigation, and emergency support.

On the new journey of building Chinese-style modernization, the reform of state-owned enterprises has a long way to go. First of all, state-owned enterprises should further strengthen the political and organizational functions of grass-roots party organizations to ensure that the Party organization covers all levels and key positions of the enterprise. Upholding Party leadership and strengthening Party building are essential requirements for realizing Chinese-style modernization. We will comprehensively strengthen Party building, ensure that party building is closely integrated with the operation and development of enterprises, and improve the quality and effectiveness of party building. We will continue to improve Party conduct and clean government, resolutely investigate and punish corruption, and foster a clean and upright political environment. We will vigorously promote entrepreneurship and build cohesion for development.

Second, state-owned enterprises need to further improve the market-oriented operation mechanism and achieve greater development in the Chinese-style modernization. At present, state-owned enterprises are comprehensively building a new business responsibility system under the modern enterprise system with Chinese characteristics, implementing the term system and contractual management, as well as salary distribution and incentive and restraint mechanisms adapted to the market, so as to stimulate the enthusiasm, initiative and creativity of cadres and employees at all levels of entrepreneurship. In the future, state-owned enterprises should achieve obvious results in accelerating the construction of world-class enterprises and cultivating specialized and special new enterprises.

Finally, the reform of state-owned enterprises should improve the supervision system of state-owned assets based on capital management and play an important role in the modern economic system. The state-owned assets supervision and management system with Chinese characteristics is an important part of the national governance system and governance capacity. The core of improving the capital-management state-owned assets supervision system is to improve the supervision capacity and supervision level of state-owned assets institutions, improve the efficiency of state-owned capital allocation and operation, and achieve the preservation and appreciation of state-owned assets. We will improve the mechanism of coordination among all kinds of supervision, such as intra-party supervision, investor supervision, discipline inspection supervision, inspection supervision, audit supervision, financial and accounting supervision, and social supervision, and strengthen internal supervision of enterprises.

Source: SASAC of The State Council