Deepening the reform of state assets and state-owned enterprises and improving their core competitiveness is a key task put forward in this year's government work report. This is of great significance to the current economic work. Enhancing the core competitiveness of state-owned enterprises is of strategic significance to upholding and improving the basic socialist economic system, which will effectively enhance our economic strength, scientific and technological strength and international competitiveness.

As an important carrier for the implementation of national strategies and a basic unit to support the smooth circulation of the market, the overall improvement of the core competitiveness of state-owned enterprises is conducive to promoting the high-quality development of the entire economy and society. Improving the competitiveness of state-owned enterprises can improve the quality and efficiency, comprehensively improve factor productivity, and provide a more solid material foundation. At the same time, it can also build a new industrial ecosystem by giving full play to the radiation and initiative of extending the industrial chain and entering new fields, and give full play to the advantages of economies of scale and scope.

At present, the growth mode of state-owned enterprises is changing from factor driven to innovation-driven, but there are still many bottlenecks in the process of self-reliant development of high-level science and technology. Vigorously promoting the breakthrough improvement of core competitiveness of state-owned enterprises in the field of innovation can provide forward-looking guidance for independent innovation of state-owned enterprises, plan scientific and technological opening and cooperation with a global vision, and change the situation that key core technologies are subject to others. In addition, it can encourage them to seize the opportunities of scientific and technological revolution, deeply change the innovation mechanism, production mode and management paradigm of enterprises, and finally realize independent innovation, so as to provide strong driving force for the realization of high level of scientific and technological self-reliance.

Substantial improvement of the core competitiveness of state-owned enterprises is also an inherent requirement for deepening the reform comprehensively. At present, increased profitability of state-owned enterprises does not go hand in hand with expansion. According to a list released by Fortune in 2022, the average profit of US companies in the World's top 500 is 2.5 times that of Chinese state-owned companies on the list. In this regard, we should grasp the key issues, optimize the target management system of state-owned enterprises comprehensively, promote the reasonable flow and optimal combination of high-quality production factors, stimulate the internal power of deep optimization of the layout structure of state-owned economy, and fundamentally enhance the core competitiveness of state-owned enterprises.

First, we will systematically plan and promote a new round of actions to deepen and upgrade the reform of state-owned enterprises. It is necessary to consolidate the achievements of the three-year actions to deepen the reform of state-owned enterprises, focus on improving core competitiveness, and plan to promote a new round of more strategic, systematic, groundbreaking and substantive actions to deepen and upgrade the reform of state-owned enterprises, so as to continuously make new breakthroughs and achievements in the reform.

Second, we will optimize and adjust the structure of the state-owned economy and focus more on main industries. We will continue to promote the function of the state-owned economy to focus on strategic security, industrial leadership, national economy and people's livelihood, and public services. Focusing on the strategic fulcrum of expanding domestic demand, we will strengthen our ability to provide support for key links, key areas, and key products, adjust the stock structure, optimize the direction of incremental investment, and give full play to the strategic role of the state economy in supporting it. We should encourage state-owned enterprises to foster innovative factors that lead the direction of future scientific and technological reform and support major national strategic needs, accelerate the accumulation of original innovative technologies, and steadily win the strategic initiative of scientific and technological innovation. We will work hard to improve our ability to consolidate basic chains, strengthen chains with technologies, integrate strong chains, and optimize and plastic chains. We will intensify efforts to tackle "bottleneck" technologies in core industries, and align industrial development with national strategic needs.

Third, we will improve the system of modern state-owned enterprises with Chinese characteristics and give full play to their vitality. To improve the core competitiveness of state-owned enterprises system as a breakthrough, better clarify the board of directors, managers and other powers and responsibilities boundary. We will improve market-based incentive and restraint mechanisms. We will dynamically improve the list of powers delegated and the list of regulatory powers and responsibilities, and make the supervision of state assets more professional, systematic and law-based. We need to expand the space for soes to "go overseas", accurately assess the changes in the environment and situation for soes to "go global", take the Belt and Road Initiative as an important platform, and encourage soes to participate in global resource allocation on a wider scale, in wider areas, and at a deeper level. We will encourage state-owned enterprises to participate deeply in global industrial division of labor and cooperation, make good use of both domestic and international resources, and expand the space for enterprises to optimize the allocation of resources.

Source: State-owned Assets Supervision and Administration Commission of the State Council