A few days ago, the State-owned Assets Supervision and Administration Commission of the State Council held a meeting of central enterprise leaders to emphasize that it is necessary to deepen the reform and upgrade actions of state-owned enterprises around enhancing core functions and improving core competitiveness. Competitiveness is the ability of enterprises to create and realize value in competition, and corporate governance provides internal support for this ability. Therefore, the improvement of core competitiveness of state-owned enterprises must be achieved by improving corporate governance.

The competitiveness of enterprises lies in the effective integration of internal and external resources, the ability to establish their own advantages in the fierce market competition, and the ability to obtain long-term survival and sustainable development. It is dynamic and behaves differently at different stages of development. The essence of corporate governance is to coordinate the interest relationship between the company and stakeholders through a set of formal or informal, internal and external mechanisms, so as to ensure the scientific decision-making of the company and achieve the growth of corporate value. The research shows that different governance structures affect the accumulation, improvement and effective utilization of key resources by influencing the enthusiasm of owners of key resources, and ultimately enhance the competitiveness of enterprises. It is the core competitiveness of different stages that promotes enterprises to overcome difficulties and challenges one after another, stand out in the fierce market competition, and make the value of their products and services continue to be improved.

As an important pillar of the national economy, the core competitiveness of state-owned enterprises follows the general connotation of the core competitiveness of enterprises. It should help state-owned enterprises to enter different markets, including domestic and international markets; It will help the state-owned enterprises to form a mature enterprise system and long-term corporate culture and value orientation, and become the ability base for their expansion of business; It should also be difficult for competitors to copy and imitate, which requires state-owned enterprises to have the ability to innovate continuously.

In view of this, to improve the core competitiveness of state-owned enterprises by improving corporate governance, we need to solidly improve the corporate governance structure, adhere to the management specialization and financial bottom line, establish a competitive incentive mechanism, pay attention to improve the three-dimensional supervision and restraint mechanism and other measures to support. If an enterprise can form a balanced and orderly governance structure, and implement stable corporate governance and form stable expectations based on this framework, such as making sound financial policies, following the operating principles of professional division of labor, avoiding blind expansion and excessive diversification, and at the same time, the business managers of the enterprise are due diligence and strive to create excellence for the development of the enterprise, its core competitiveness will naturally improve.

Source: SASAC of The State Council