Bei­jing’s De­vel­op­ment of State-owned As­sets and En­ter­prises

Beijing (English) - - CONTENTS - Trans­lated by Zhou Fu­jing Edited by Roberta Raine

The city made high achieve­ments in the re­form of a sta­te­owned econ­omy and en­ter­prises which have played roles in struc­tural re­form.

State-owned en­ter­prises (SOES) and state-owned as­sets have played im­por­tant roles in pro­mot­ing the coun­try's sup­ply-side struc­tural re­form. Dur­ing the past five years, Bei­jing has made sub­stan­tial achieve­ments in the de­vel­op­ment of a state-owned econ­omy and deep­ened the re­forms and in­no­va­tions of SOES and state as­sets. The Party (Com­mu­nist Party of China) build­ing within SOES has also been strength­ened.

High Achieve­ments for a State-owned Econ­omy

Dur­ing the past five years, Bei­jing has been ac­tive in han­dling the city's com­pli­cated eco­nomic en­vi­ron­ment and en­hanced the de­vel­op­ment of a state-owned econ­omy. It es­tab­lished mech­a­nisms, clar­i­fied tasks, and strength­ened su­per­vi­sion. The coun­try's state-owned econ­omy re­alised faster growth, im­proved markedly in both de­vel­op­ment qual­ity and re­turns, with emerg­ing in­no­va­tions.

By the end of June 2017, the to­tal as­sets of Bei­jing's mu­nic­i­pal en­ter­prises were 4.16716 tril­lion yuan, a year-on-year in­crease of 15.8 per­cent and an in­crease of 80.3 per­cent com­pared with five years ago; their own­ers' to­tal equity was 1.3651 tril­lion yuan, up by 17.9 per­cent year on year. Their busi­ness rev­enues and prof­its reached 663.77 bil­lion yuan and 38.75 bil­lion yuan, re­spec­tively, in­creas­ing by 22.7 per­cent and 40.6 per­cent year on year and by 46.3 per­cent and 78.8 per­cent, re­spec­tively, com­pared with five years ago. Taxes and fees they turned over in­creased by 77.8 per­cent in these five years.

In terms of de­vel­op­ment qual­ity, Bei­jing pro­moted high-end in­dus­trial de­vel­op­ment and es­tab­lished the state-owned eco­nomic lay­out, with in­fra­struc­ture and pub­lic ser­vice in­dus­try as the ba­sis, backed up by mod­ern man­u­fac­tur­ing and mod­ern ser­vices, and re­lied on ur­ban in­dus­tries char­ac­ter­is­tic of the cap­i­tal. Strate­gic emerg­ing in­dus­tries have pri­mar­ily taken shape. In­dus­tries treat­ing sewage and solid waste, as well as en­vi­ron­men­tal restora­tion, oc­cupy a lead­ing po­si­tion. Mod­ern ser­vice in­dus­tries, such as tourism, health, med­i­cal, cul­tural and creative in­dus­tries, de­vel­oped at a faster speed and have be­come new fac­tors in eco­nomic

growth. The BAIC Group and the Head Of­fice of Shougang (re­named the Shougang Group) were in­cluded on the list of For­tune 500 com­pa­nies; in ad­di­tion, 17 com­pa­nies were in­cluded on the list of China's “Top 500,” and there are 12 en­ter­prises in the city with as­sets of more than 100 bil­lion yuan.

Mean­while, Bei­jing has strength­ened in­de­pen­dent in­no­va­tion of SOES, and their in­no­va­tion-driven achieve­ments are grad­u­ally be­ing seen. At present, the mu­nic­i­pal­ity's SOES have about 300 lab­o­ra­to­ries or en­gi­neer­ing tech­nol­ogy cen­tres for in­no­va­tion, 61 of which are at the na­tional level. They em­ploy about 70,000 re­search personnel, who ac­count for 8.3 per­cent of their to­tal staff. For the re­cent three years, fund­ing for the mu­nic­i­pal­ity's SOES' re­search and de­vel­op­ment saw an av­er­age an­nual growth of 15.6 per­cent, and some high-tech en­ter­prises in­vested more than five per­cent of their main busi­ness rev­enue in re­search; the num­ber of patent ap­pli­ca­tions saw an an­nual growth of 16.7 per­cent and reached 14,000 in 2016. The BOE Tech­nol­ogy Group re­alised five “firsts” in the world, in­clud­ing the largest num­ber of ap­pli­ca­tions for new patents and the great­est mar­ket share of medium- and large-sized high-end dis­play prod­ucts; the sales vol­ume of purely elec­tric-pow­ered ve­hi­cles of the BAIC Group ranked first in the na­tion.

Bei­jing has also ac­tively pro­moted co­or­di­nated in­no­va­tion. It signed the Work­ing Plan for the Co­or­di­nated In­no­va­tion of Cen­tral and Mu­nic­i­pal En­ter­prises with the Sta­te­owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion of the State Coun­cil, and co­op­er­ated with the Zhong­guan­cun Ad­min­is­tra­tive Com­mit­tee to set up the Zhong­guan­cun Yunti Tech­nol­ogy In­no­va­tion Al­liance. The mu­nic­i­pal­ity's SOES in the Zhong­guan­cun area reached agree­ments on 128 pro­grammes. High-end in­tel­li­gent park­ing ro­bots, an E plus in­no­va­tion and en­trepreneur­ship ac­cel­er­a­tion com­mu­nity, and other projects have been put into oper­a­tion.

To pro­mote open­ing up, the city's SOES have es­tab­lished re­search and de­vel­op­ment in­sti­tu­tions over­seas, such as in the United States, Ger­many, Spain, Italy and Ja­pan, and have ex­panded to 49 coun­tries and re­gions. The Shou Qi Group, a branch of the Bei­jing Tourism Group, pro­moted the com­bi­na­tion of tra­di­tional in­dus­tries with “In­ter­net plus” and used fi­nan­cial cap­i­tal to build its own web­site for au­to­mo­bile rentals and reser­va­tions. Its car rental ser­vice ranks in the top three in the na­tion's In­ter­net car rental in­dus­try.

At the 2017 Bei­jing Science and Tech­nol­ogy Award Con­fer­ence, 16 projects that were hosted or com­pleted by 26 mu­nic­i­pal SOES re­ceived awards. Among them, seven projects from seven dif­fer­ent en­ter­prises, such as BAIC Mo­tor and the Bei­jing En­ergy In­vest­ment Hold­ing Com­pany Lim­ited, won first prize, ac­count­ing for a quar­ter of the city's first-prize awards.

High­lights of Re­form

For five years, Bei­jing has fol­lowed the prin­ci­ple of “draft­ing over­all plan­ning, es­tab­lish­ing ex­per­i­men­tal zones, and mak­ing break­throughs in ma­jor fields” to de­velop and op­ti­mise SOES. It has es­tab­lished the main re­form frame­work and im­proved the mech­a­nisms to re­form this sys­tem.

Bei­jing has con­tin­ued to strengthen re­search on how to im­prove and re­form this sys­tem, to make it more sys­tem­atic, com­plete and col­lab­o­ra­tive, and has is­sued Guidelines on Com­pre­hen­sively Deep­en­ing the Re­form of Mu­nic­i­pal State-owned As­sets and En­ter­prises. It took the lead in the coun­try to is­sue an im­ple­men­ta­tion plan con­cern­ing the re­form and worked out spe­cific mea­sures and reg­u­la­tions for the clas­si­fi­ca­tion of SOES, the re­form of di­ver­si­fied own­er­ship and the salary sys­tem for the staff of these en­ter­prises. Bei­jing has so far formed a sys­tem­atic re­form lay­out.

With re­gard to pi­lot re­forms, Bei­jing has fo­cused on the ma­jor and dif­fi­cult is­sues that re­strained de­vel­op­ment, worked out mea­sures based on ac­tual cir­cum­stances, and launched 15 pi­lot re­forms. It has ac­cu­mu­lated ex­pe­ri­ence in set­ting up boards of direc­tors, how to clas­sify ap­praisals of staff mem­bers, and trans­fer of prop­erty rights, with the aim of pro­mot­ing these re­forms na­tion­wide. The Bei­jing Tourism Group, on be­half of SOES, gave a speech at the Na­tional SOES Con­fer­ence. Re­forms in em­ployee own­er­ship stock plan in mixed own­er­ship en­ter­prises, and the re­con­struc­tion of en­ter­prises in­vested and op­er­ated by state cap­i­tal, have gone smoothly.

Bei­jing has ex­plored com­pre­hen­sive us­age of SOES' re­serve land to pro­mote in­dus­trial up­grades and has ex­plored new so­lu­tions to other re­main­ing is­sues by hav­ing en­ter­prises es­tab­lish so­cial in­sur­ance plat­forms and gov­ern­ment pur­chas­ing ser­vices. It has brought forth new ideas to pi­lot these mech­a­nisms and des­ig­nated the Head Of­fice of Shougang as the or­gan­i­sa­tion that will carry out com­pre­hen­sive pi­lot re­forms.

A se­ries of break­throughs has been made in re­form of im­por­tant ar­eas. To in­te­grate the re­sources of en­ter­prises, the city guided the com­ple­tion of a group of merg­ers and re­or­gan­i­sa­tions, such as the merger be­tween the Bei­jing En­ergy In­vest­ment Hold­ing Com­pany and the Jing­mei Group. The Jinyu Group and the Tang­shan Ji­dong Ce­ment Com­pany achieved a strate­gic re­or­gan­i­sa­tion to ad­dress re­gional over­ca­pac­ity, a use­ful at­tempt for the Bei­jing-tian­jin-he­bei co­or­di­nated in­dus­trial de­vel­op­ment.

Bei­jing has en­cour­aged en­ter­prises to re­build and go pub­lic, and in­tro­duced a col­lab­o­ra­tion sys­tem for pri­vately-owned en­ter­prises. The mod­ern en­ter­prise sys­tem has been es­tab­lished in all the mu­nic­i­pal­ity's first-level SOES. The BAIC Mo­tor Cor­po­ra­tion Lim­ited, China Se­cu­ri­ties, and the Bei­jing Cer­tifi­cate Author­ity be­came an IPO (ini­tial pub­lic of­fer­ing) com­pa­nies and the Jinyu Group and the Bei­jing Subur­ban Tourism De­vel­op­ment Com­pany (Bei­jing Jiaolü) be­came listed com­pa­nies. Break­throughs were made in missed own­er­ship's re­form in firstlevel en­ter­prises.

The num­ber of mu­nic­i­pal listed com­pa­nies in­creased to 58 and shares is­sued at 63, with a to­tal mar­ket cap­i­tal of more than 1.1 tillion yuan. The mu­nic­i­pal­ity's mixed own­er­ship com­pa­nies ac­counted for about 70 per­cent of the to­tal. Bei­jing has in­vented more su­per­vi­sion meth­ods and set up spon­sored su­per­vi­sion in­for­ma­tion plat­forms for SOES to re­port to spon­sors. The mech­a­nism makes 28 ma­jor is­sues—such as com­pa­nies' fi­nances, in­vest­ments and ma­jor con­struc­tion tasks— known to the pub­lic, en­sures share­hold­ers' right to know, and ac­ti­vates su­per­vi­sion. Ef­forts were also made to pro­mote co­or­di­nated su­per­vi­sion, host joint su­per­vi­sion con­fer­ences, and im­prove mech­a­nisms of Bei­jing's State-owned As­sets Ad­min­is­tra­tion and Com­mis­sion for plan­ning, co­or­di­nat­ing, re­source shar­ing, and co­op­er­a­tion. In 2016, The In­spec­tion Team of China's State Coun­cil spoke highly of Bei­jing Mu­nic­i­pal­ity's re­form of SOES and state-owned econ­omy, af­firm­ing its ad­her­ing to mar­ket ori­en­ta­tion and cor­rect po­lit­i­cal di­rec­tion.

Serv­ing So­ci­ety

For five years, Bei­jing's mu­nic­i­pal SOES have played a key role in as­sist­ing the trans­fer of the city's func­tions un­re­lated to its po­si­tion as the na­tion's cap­i­tal (non-cap­i­tal func­tions) and pro­mot­ing the co­or­di­nated de­vel­op­ment of Bei­jing, Tian­jin and He­bei.

To shift non-cap­i­tal func­tions, the city first launched the relocation of the SOES that were not in line with the city's ori­en­ta­tion and is­sued guidelines for ac­cel­er­at­ing the with­drawal of those un­qual­i­fied. It listed tasks and es­tab­lished ac­count­abil­ity mech­a­nisms, as well as mech­a­nisms for monthly sched­ul­ing, di­vi­sion of labour, and in­cen­tives based on an­nual per­for­mance.

In the re­cent three years, state-owned cap­i­tal in­vested in non-cap­i­tal func­tions sur­passed one-third of the to­tal op­er­at­ing bud­get. Un­til Au­gust 2017, Bei­jing's mu­nic­i­pal SOES have taken the lead to re­lo­cate whole­sale mar­kets in the Da­hong­men and Bei­jing Zoo ar­eas, shut down 31 mar­kets, im­proved 17 vil­lages, dis­man­tled 4.474 mil­lion square me­tres of il­le­gal con­struc­tion, and rec­ti­fied 300 un­der­ground sites.

It made over­all plan­ning for land left un­used to in­crease the city's green area and im­prove pub­lic ser­vice fa­cil­i­ties and ecol­ogy. It rec­ti­fied the shops nearby Dong­dan Park and Shuangxiu Park to re­store green land. It shut down the Wang­ping­cun and Chang­gouyu coal en­ter­prises and five ce­ment com­pa­nies and ad­dressed the over­ca­pac­ity of 1.8 mil­lion tons of coal and 3.9 mil­lion tons of ce­ment.

In the past five years, Bei­jing has ac­cel­er­ated the with­drawal of 404 en­ter­prises that have high re­source con­sump­tion and pro­duce a large amount of pol­lu­tion. Eigh­teen SOES have un­der­taken 58 projects re­lated to Bei­jing's sub-cen­tre con­struc­tion and made rapid progress in the con­struc­tion of the Ad­min­is­tra­tive Of­fice Area, the Uni­ver­sal Bei­jing Theme Park, and ur­ban in­fra­struc­ture.

To of­fer bet­ter ur­ban ser­vices, Bei­jing is­sued Guidelines on Mu­nic­i­pal State- owned En­ter­prises Per­form­ing So­cial Re­spon­si­bil­i­ties, which re­quires first-grade mu­nic­i­pal en­ter­prises to in­clude their so­cial re­spon­si­bil­i­ties in an­nual work re­ports of boards of direc­tors, es­tab­lish rel­e­vant man­age­ment sys­tems, and re­leases, in or­der to in­te­grate the de­vel­op­ment of en­ter­prises with ur­ban con­struc­tion and man­age­ment.

From 2012 to 2017, the city's SOES un­der­took 40 per­cent of the mu­nic­i­pal­ity's ma­jor projects. Con­struc­tion was com­pleted on nu­mer­ous projects, such as the AECC Com­mer­cial Air­craft Engine Cor­po­ra­tion, the BBAC (Bei­jing Benz Au­to­mo­tive Com­pany) Sup­plier In­dus­trial Park, and four ther­mo­elec­tric cen­tres, and all these projects have now been put into pro­duc­tion. The city's rail tran­sit sys­tem in­creased in length by 132 kilo­me­tres, and 50 per­cent of com­muters chose pub­lic trans­port meth­ods at the end of 2015. A group of eco-friendly fa­cil­i­ties have been put into oper­a­tion, such as the Huaifang Re­cy­cling Wa­ter Plant, the Gao'an­tun Do­mes­tic Garbage In­cin­er­a­tion Plant, and the Xiao­hong­men Sludge Treat­ment Cen­tre. Bei­jing's SOES also com­pleted the con­struc­tion of fa­cil­i­ties for the South-to-north Wa­ter Di­ver­sion Project, cre­ated a three-year ac­tion plan for im­prov­ing the city's smal­land medium-sized rivers and chan­nels, and con­structed 250,000 units of gov­ern­mentsub­sidised hous­ing, which ac­counts for onequar­ter of the city's to­tal; 200,000 of these units were built on their own land.

SOES also made in­no­va­tions to im­prove ser­vices to the com­mu­nity. En­ter­prises such as the Bei­jing Cap­i­tal Agribusi­ness Group, the Bei­jing Er Shang Group, and the Bei­jing Grain Group (BGG) have en­riched their prod­ucts and launched var­i­ous com­mer­cial models, such as com­mu­nity su­per­mar­kets and chain stores, of­fer­ing con­ve­nience for res­i­dents. About ten en­ter­prises, in­clud­ing the Bei­jing State-owned As­sets Man­age­ment Cor­po­ra­tion and the Bei­jing En­ter­prises Group Com­pany, have built nurs­ing in­sti­tu­tions for the el­derly.

Mech­a­nisms and plat­forms were set up to pro­mote the co­or­di­nated de­vel­op­ment of Bei­jing, Tian­jin and He­bei, in­clud­ing a sys­tem to co­or­di­nate con­fer­ences for SOES in the three places; co­or­di­nated mech­a­nisms for ma­jor projects; the Al­liance for the De­vel­op­ment of Equity Mar­kets in Bei­jing, Tian­jin and He­bei; and the Bei­jing-tian­jinHe­bei Tourism Re­sources Trade Plat­form.

In ad­di­tion, Bei­jing has set up plat­forms to re­lo­cate and un­der­take cer­tain in­dus­tries. It was de­cided that 18 projects will be re­lo­cated to the 5.5-square-kilo­me­tre Caofei­d­ian In­dus­trial Pi­o­neer­ing Zone, with a to­tal in­vest­ment of 32.7 bil­lion yuan. In­fra­struc­tures such as hospi­tals, schools, and kinder­gartens were in­tro­duced to the 4.6-square-kilo­me­tre Caofei­d­ian In­dus­tri­alTown In­te­gra­tion Pi­o­neer­ing Zone. The Bei­jing-tian­jin Co­op­er­a­tion Demon­stra­tion Zone fi­nalised the own­er­ship of its land and con­struc­tion was launched in its 11-squarek­ilo­me­tre zone. Ma­jor projects, such as The No. 4 Plant of Bei­jing Hyundai Mo­tor and the Sanyuan Food In­dus­trial Park, have been put into oper­a­tion. The Bei­jing-tian­jin-he­bei In­ter­city Rail­road In­vest­ment Com­pany was founded and a rail­road net­work plan was drafted, ac­cord­ing to which the re­gional in­ter­city rail­way tracks would ex­tend to 3,172 kilo­me­tres by 2030. At present, prepa­ra­tions for projects such as the Bei­jing–tang­shan Rail­way, the Bei­jing–tian­jin Bin­hai New Zone Rail­way, and in­ter­city rail­way link­ing routes ran smoothly. SOES will also as­sist in the con­struc­tion of the Xiong'an New Area.

Strength­en­ing Party Build­ing

Ad­her­ing to the CPC'S lead­er­ship over SOES is a ma­jor po­lit­i­cal prin­ci­ple, and es­tab­lish­ing a mod­ern en­ter­prise sys­tem is the di­rec­tion for re­form. For five years, Bei­jing has firmly ad­hered to the Party's lead­er­ship and laid a solid po­lit­i­cal and or­gan­i­sa­tional foun­da­tion for deep­en­ing the re­form of SOES and sta­te­owned as­sets.

The Party Com­mis­sion of the Sta­te­owned As­sets Ad­min­is­tra­tion and Com­mis­sion of the Peo­ple's Gov­ern­ment of Bei­jing Mu­nic­i­pal­ity es­tab­lished a Party build­ing group, held meet­ings reg­u­larly, and strength­ened re­search on Party con­struc­tion. The com­mis­sion is­sued opin­ions on ad­her­ing to the CPC'S lead­er­ship and strength­en­ing Party con­struc­tion while deep­en­ing re­forms. It fo­cused on seven ma­jor tasks, pro­moted elec­tions and lead­er­ship tran­si­tion for grass roots Party or­gan­i­sa­tions, and strength­ened mech­a­nisms for re­port­ing, ap­praisal, and eval­u­a­tion.

In ad­di­tion, the com­mis­sion ex­plored and im­ple­mented a su­per­vi­sion and ac­count­abil­ity sys­tem, and con­sid­ered Party build­ing an im­por­tant as­pect for eval­u­at­ing lead­er­ship. Im­proper mea­sures will be re­vised and personnel who don't per­form their du­ties well in Party build­ing will be held ac­count­able.

To in­te­grate the CPC'S lead­er­ship with en­ter­prise gov­er­nance, the com­mis­sion af­firmed the Party's le­gal sta­tus in SOES and in­cor­po­rated its struc­ture and re­spon­si­bil­i­ties into the en­ter­prises' man­age­ment sys­tems. En­ter­prises di­rectly funded or reg­is­tered by the Bei­jing Mu­nic­i­pal Gov­ern­ment have all fin­ished re­vis­ing their ar­ti­cles of in­cor­po­ra­tion. The com­mis­sion also paid at­ten­tion to form­ing boards of direc­tors. Qual­i­fied personnel not from the com­pany are also el­i­gi­ble to be elected a mem­ber of the board, which im­proves the de­ci­sion-mak­ing sys­tem. In all the com­pa­nies di­rectly funded by the city that have boards of direc­tors, the sec­re­tary of the Party com­mis­sion also serves as the chair­man of the board. The com­mis­sion has as­signed 103 personnel as out­side direc­tors to com­pa­nies, and the num­ber of non­com­pany direc­tors ac­counted for half of the board in com­pet­i­tive com­pa­nies. Forty com­pa­nies have fin­ished re­vis­ing the Party com­mis­sion's rules of pro­ce­dures and the de­ci­sion-mak­ing sys­tem.

The com­mis­sion car­ried out ide­o­log­i­cal and the­o­ret­i­cal con­struc­tion for Party mem­bers and or­gan­i­sa­tions. It launched se­lec­tions and com­pe­ti­tions to strengthen cul­tural and staff build­ing of SOES. It held an event called “Role Models of State-owned En­ter­prises • Role Models of Bei­jing” and launched an “SOES Open Day.”

In terms of de­vel­op­ing the con­duct and in­tegrity of SOES, the com­mis­sion has signed let­ters of ac­count­abil­ity with Party com­mis­sions that have en­ter­prises un­der their su­per­vi­sion, and with the first- and sec­ond­grade mu­nic­i­pal en­ter­prises. The com­mis­sion fur­ther im­proved the sys­tems for re­port­ing com­plaints, for su­per­vis­ing dis­ci­pline, and for re­view. It had talks with the lead­ers and of­fi­cials of 144 en­ter­prises who have taken of­fice since 2013. It also strictly in­ves­ti­gated and dealt with cor­rup­tion in SOES dur­ing the re­form process.

In re­cent years, Bei­jing has made out­stand­ing progress in shift­ing its non­cap­i­tal func­tions, trans­fer­ring de­vel­op­ment modes, pro­mot­ing the re­form of SOES, and strength­en­ing Party build­ing. In the fu­ture, on the ba­sis of the sound and sta­ble de­vel­op­ment of a state-owned econ­omy, Bei­jing will con­tinue to en­hance both de­vel­op­ment qual­ity and re­turns, im­prove the mod­ern en­ter­prise sys­tem and state as­set su­per­vi­sion sys­tem, form a lay­out in line with the cap­i­tal's de­vel­op­ment strate­gies, and demon­strate the role of SOES and a state-owned econ­omy in bet­ter serv­ing so­ci­ety.

Sub­way Yan­fang Line (Yan­cun Vil­lage-zhouk­oudian Town), China’s first au­to­matic line for in­de­pen­dent re­search

The Arc­tic Ocean soda pro­duc­tion line at Bei­jing Yiqing Hold­ing Com­pany Lim­ited

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.