Read in Chinese

Speakers:

Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC

Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC

Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 26, 2024

Xing Huina:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Wang Hongzhi, vice chairman of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), to brief you on relevant developments and answer your questions. Also present today are Mr. Lin Qingmiao, director general of the Bureau of Enterprise Reform of the SASAC; Ms. Liu Shaowei, deputy director general of the Bureau of Financial Oversight and Operational Evaluation of the SASAC; and Mr. Fang Lei, deputy director general of the Bureau of Scientific and Technological Innovation of the SASAC. Now, I'll give the floor to Mr. Wang for his introduction.

Wang Hongzhi:

Thank you. Good morning. At a time when the whole nation is deeply studying and implementing the guiding principles of the third plenary session of the 20th Central Committee of the Communist Party of China (CPC), I am very pleased to meet with you to introduce the situation of high-quality development of state capital and state-owned enterprises (SOEs). First of all, I would like to express my heartfelt thanks for your long-term care and support.

The just-concluded third plenary session of the 20th CPC Central Committee made major arrangements for deepening the reform of state capital and SOEs, fully reflecting the great importance that the CPC Central Committee with Comrade Xi Jinping at its core attaches to SOEs. People in this sector are deeply encouraged and excited. We will comprehensively and deeply study and understand, and effectively implement the decisions.

Since the beginning of the new era, the SASAC and centrally-administered SOEs have resolutely implemented the major directives of the CPC Central Committee and the State Council, firmly promoted high-quality development, and fully and faithfully applied the new development philosophy on all fronts. This has led to substantial, transformative changes in the reform and development of enterprises. Quality and efficiency have significantly improved, the intensity of sci-tech innovation has reached unprecedented levels, the layout and structure have been continuously optimized, the pace of high-quality development has been accelerated, and the strategic support of the state-owned sector has been brought into full play. These achievements can be seen in five areas:

First, the ability to create value has been significantly enhanced, providing a more solid foundation for the high-quality development of enterprises. We have continuously improved the high-quality development index system, implemented special actions such as quality and performance improvements, value creation and brand leadership, and continuously promoted enterprises to become stronger, better and larger. By the end of 2023, the total assets of centrally-administered SOEs reached 86.6 trillion yuan, 2.8 times that of the end of 2012. Added value, revenue and profits have all doubled compared with 2012. Efficiency indicators such as operating income profit margin and overall labor productivity have steadily increased, and the economic operation has maintained steady progress and improved in terms of quality and efficiency.

Second, the capability for sci-tech innovation has rapidly increased, providing stronger momentum for the high-quality development of enterprises. We have fully leveraged the advantages of the new system for mobilizing resources nationwide, making sci-tech innovation our top priority, deeply integrating into the national innovation system, optimizing the innovation ecosystem, strengthening innovation coordination, and focusing on breakthroughs in key and core technologies. During the 13th Five-Year Plan (2016-2020) period, the R&D investment of centrally-administered SOEs increased by an average annual rate of 14.5%. Over the past two years, R&D investment has exceeded 1 trillion yuan annually, achieving a series of landmark results in fields such as aerospace, deep sea, energy and transportation, and making significant breakthroughs in key materials and core components.

Third, the optimization and adjustment of the layout structure have been significantly advanced, providing broader space for high-quality development. We have focused on our main business, developed the real economy and built a modern industrial system. We have made substantial efforts in strategic reorganization and professional integration, leading to the restructuring and merging of 28 groups of 50 enterprises, and the establishment and acquisition of 15 centrally-administered SOEs. We have vigorously promoted the high-end, intelligent and green development of traditional industries, accelerated the formation of a systematic layout of strategic emerging industries, achieving a 32% growth rate in strategic emerging industry investment in 2023, with revenue exceeding 10 trillion yuan for the first time. The control and influence of the state-owned economy in important industries and key fields have been further strengthened, with new advantages in emerging sectors rapidly taking shape.

Fourth, major breakthroughs have been achieved in the reform of state capital and SOEs, further boosting the vitality of high-quality development of enterprises. We have stayed focused on our goals and adopted a problem-oriented approach to continue the implementation of a three-year action plan for SOE reform as well as an initiative to deepen and upgrade SOE reform. The modern corporate system with distinctive Chinese features has been continuously improved, and the reform to convert SOEs into standard companies has been fully completed. We have successfully relieved SOEs of their obligations to operate social programs and have resolved other longstanding problems they have experienced. Comprehensive breakthroughs have been achieved with reforms of the three systems of labor employment management, human resources and distribution. The state capital regulation system has fully leveraged its advantages in terms of specialization, systematization, rule of law and efficiency. A group of new modern SOEs have emerged, featuring new development models, new corporate governance, new operating mechanisms and new structures.

Fifth, the role played by the state-owned sector in serving the national economy and people's livelihood has been fully demonstrated, and the high-quality development achievements of enterprises have been shared among more people. We have maintained ‘for the people' as the essential attribute and have focused on serving the country's most fundamental interests. We have deeply implemented major regional strategies, actively undertaken major projects for the people's wellbeing such as the Sichuan-Xizang Railway and the west-to-east gas transmission project, solidly ensuring a stable and secure supply of basic energy and resources. Since 2013, the total tax and fee payments within the state-owned sector have exceeded 20 trillion yuan. The sector has also introduced and invested in various types of poverty alleviation funds that exceed 100 billion yuan, thus taking the lead in supporting the fight against major disasters and fully demonstrating the sector's sense of responsibility.

Next, we will resolutely implement the arrangements made at the third plenary session of the 20th CPC Central Committee, uphold and strengthen the Party's overall leadership over SOEs, deepen reform of state capital and SOEs, and work to refine the layout and structure of the state-owned sector. We will remain committed to helping state capital and SOEs get stronger, do better and grow bigger with their core functions and core competitiveness enhanced, making new contributions to building a great country and advancing national rejuvenation.

I will stop here for now. Next, my colleagues and I are willing to answer your questions. Thank you!