State Media Outlines Eight Key Missions for State-owned Enterprise Reforms in 2020
The state-operated Economic Information Daily has highlighted eight key missions in 2020 for China’s ongoing reform of its state-owned enterprise (SOE) sector.
- Improving a modern enterprise system with Chinese characteristics. This will involve “integration between the party leadership and modern enterprise management methods, and establishment of a decision-making item list for which enterprise party committees and organisations play a leadership role.” 2020 will also see the “comprehensive establishment of boards for exclusively state-invested companies that are majority comprised of external directors.”
- Actively driving mixed-ownership system reforms. This will involve the exploration of multiple forms of public-ownership, and use of ownership reforms to achieve increases in the value of state-owned capital.
- Establishment of market-based operating mechanisms, increases in the endogenous vitality of SOE’s. The Chinese SOE sector will “uphold the market-based direction of reform, and effectively drive in-depth reform of labour, human resource and allocation systems. This will especially be the case when it comes to recruitment for executive positions at SOE’s.
- A focus on strengthening the innovation capability of enterprises. The Chinese government envisages the establishment of “industry technological innovation leagues that mutually integrate enterprises, scientific research institutions and tertiary institutions…to focus innovation resources, and organise cross-sector, cross-discipline, cross-regional coordinative innovation with industry and academia.”
- A focus on driving adjustment and optimisation of state-owned capital deployment. The state-owned economy is expected to play a key role in national missions including “the establishment of an innovation nation, the Belt and Road Initiative and the establishment of a great manufacturing power.”
- Accelerating the cultivation of world-class enterprises that are globally competitive. This will involve “in-depth undertaking of internationalised operation, accelerating the formation of international economic cooperation and new competitive advantages, and continually expanding new space for international development.”
- Creating more open and integrated systems and mechanisms.
- A focus on improvements to state-owned asset regulatory models that prioritise capital management. China will continue to implement a “state-owned capital authorised management system,” and accelerated a transition in the role of regulation of state-owned assets.