The State-owned Assets Supervision and Administration Commission of the State Council recently announced that on the basis of the original 11 world-class demonstration enterprises, 10 central enterprises such as China Electronics, Sinopec, and 7 local state-owned enterprises such as Shanghai Automobile and Anhui Conch will be included in the construction scope of world-class demonstration enterprises. So far, 28 companies have become "demonstration students" to create world-class enterprises. These enterprises master the key technologies of industry development, have global competitive products, have an important force to lead the industrial ecology, and are setting an example in scientific and technological innovation, value creation, corporate governance, resource integration, brand influence and other aspects.

To build world-class enterprises, Chinese enterprises have the foundation and strength. A total of 145 Chinese companies are listed on the 2022 Fortune Global 500 list, ranking first among all countries. The number of international patent applications in China has ranked first in the world for four consecutive years since 2019. The top 500 Chinese enterprises participated in the formulation of international standards and maintained a growth trend.

However, for the world's "pacesetter" enterprises, the shortcomings and gaps of Chinese enterprises still exist. For example, the "gold content" of enterprises is not enough. The average profit of the 145 Fortune Global 500 companies is about 4.1 billion US dollars, lower than the average profit of the world's top 500 companies. Another example is that enterprise R&D investment is not high enough. Among the 2,500 companies listed in the EU Industrial R&D Investment Scoreboard 2022, Chinese companies account for 17.9% of global R&D investment, lower than US companies. For another example, the internationalization level of enterprises needs to be improved. The multinational index of China's top 100 multinational companies in 2022 is 15.59%, of which only 5 companies' multinational index reaches the average level of "Top 100 multinational companies in the world in 2022".

World-class enterprises are an important support for enhancing national competitiveness. The report to the 19th National Congress of the Communist Party of China proposed for the first time to cultivate world-class enterprises with global competitiveness. The report to the 20th National Congress of the Communist Party of China stressed accelerating the construction of world-class enterprises. The first meeting of the 20th Central Financial and Economic Commission once again proposed that we should vigorously build world-class enterprises. From "cultivating" to "accelerating construction" to "vigorously building", it reflects the importance and urgency of building world-class enterprises, as well as the fundamental requirement of adhering to the unity of construction speed and construction intensity. Under the requirements of the new goals, we need to find gaps, make up for weaknesses, and promote the formation of more world-class enterprises with excellent products, outstanding brands, leading innovation, and modern governance.

First, the combination of governance innovation and technological innovation. Modern enterprise system is the soft power needed for the growth of world-class enterprises, while innovation is the hard power. On the one hand, we must focus on the requirements of governance modernization, carry out world-class management upgrading actions, and promote enterprises to improve the modern enterprise system with Chinese characteristics. On the other hand, we should focus on the goal of leading innovation, promote the docking of enterprise technological innovation with national strategic needs, guide enterprises to focus on basic and cutting-edge technology research and development, and give enterprises the task of overcoming difficulties.

Second, to strengthen the main business and sing the brand combination. For world-class enterprises, the main business is "life", the brand is the "soul". It is necessary to guide enterprises to focus on the core business, concentrate various elements to support the layout of forward-looking strategic industries, and guide enterprises to strengthen the main business through strategic restructuring, professional integration, and digital empowering. To support the enterprise brand upward. Strengthen the protection of intellectual property rights and trademarks, vigorously support the international brand building and communication of enterprises, and enhance brand awareness, reputation and influence.

Third, based on the combination of domestic and international. The domestic market is the rear of the growth of world-class enterprises. It is necessary to consolidate the "base area" of enterprises, strengthen the construction of domestic application scenarios, support the expansion of enterprise production capacity, and promote the demonstration application of the first (set) equipment, the first batch of secondary materials, and the first edition of software. The international market is the position for the growth of world-class enterprises. It is necessary to enhance the "combat effectiveness" of enterprises, support their global development in investment and financing, support them in promoting the "going global" of equipment, technology, standards and services through the construction of the Belt and Road Initiative and international production capacity cooperation, and accelerate the layout of the international industrial chain and supply chain.

Fourth, promote entrepreneurship and create a first-class business environment. Entrepreneurship is the driving force for the growth of world-class enterprises. Entrepreneurs should be guided to enhance patriotic feelings, innovation, integrity and law-abiding, assume social responsibilities, expand international horizons, and encourage entrepreneurs to lead their enterprises to strive for world-class development. The business environment is the "nutrition" for the growth of world-class enterprises. It is necessary to meet the goals of marketization, legalization and internationalization, optimize the business environment with higher standards, and serve the construction of world-class enterprises with a world-class business environment.

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