Blueprint for SOE Reform Disclosed

At the third China Enterprise Reform and Development Forum, Hao Peng, director of the State-owned Assets Supervision and Administration Commission (SASAC), disclosed a blueprint for reforms of state-owned enterprises (SOES) in the next stage.

The SASAC will continue optimizing the layout and structural adjustment of SOES, help them withdraw from noncore businesses that do not have competitive advantages, encourage more investment of state-owned capital in important industries and key areas that are crucial to national security and the lifeblood of the national economy, and work to stimulate more investment in strategic emerging industries. Besides this, it will focus on helping the enterprises go global under the Belt and Road Initiative.

In recent years, SOES have put much energy in advanced manufacturing industries and the real economy, and accelerated the transformation and upgrading of traditional industries and the development of emerging industries, all of which significantly enhanced their profitability and competitiveness. As a result, the management mechanism was further transformed. In addition to this, the number and proportion of mixed-ownership enterprises increased dramatically, SOES became more independent market entities, and the mechanism for talent recruiting and appointing, their payment and benefits distribution was further improved. It is hoped that China’s SOES will become more market-oriented, lawbased, and globally-visioning.