The Central Economic Work Conference proposed: "We will deepen the reform and upgrade of state-owned enterprises, enhance their core functions and improve their core competitiveness." In 2023, on the basis of consolidating and deepening the achievements of the three-year action of state-owned enterprise reform, China launched the implementation of the deepening and upgrading action of state-owned enterprise reform with high quality and high starting point, and achieved fruitful results. The central enterprises have put forward a total of more than 18,000 implementation measures, and nearly 2,000 reform measures have been implemented in advance, and the coverage of the final adjustment and incompetent exit related systems in the second and third level subsidiaries of central enterprises has reached 61.3%.

How to deepen and upgrade the reform of state-owned enterprises this year? What are the priorities?

The relevant person in charge of the reform Office of the State-owned Assets Supervision and Administration Commission of the State Council said that 2024 is a key year for the implementation of the deepening and upgrading of the reform of state-owned enterprises, and it is also a tough year for the past and the next. All central enterprises and all regions should implement the major arrangements of the Party Central Committee and The State Council on the reform and development of state-owned enterprises, and strive to complete more than 70% of the main tasks by the end of the year.

Specifically, we need to do the following three things:

We will deepen reform by focusing on optimizing resource allocation. This year, we will steadily implement strategic restructuring and professional integration, and accelerate the specialized integration of new energy, main pipeline networks, port terminals, and resource recycling. We will give better play to the functions and roles of state-owned capital operation companies, tap high-quality enterprises with great potential and good growth in strategic emerging industries, invest in the layout as soon as possible, and build a professional scientific and technological innovation incubation platform.

Deepen reform around improving institutions and mechanisms. We will improve modern corporate governance of state-owned enterprises with Chinese characteristics, promote the construction of scientific, rational and efficient boards of directors, and improve the level of scientific and standardized decision-making of boards of directors. Strengthen two-way exchanges between full-time external directors and current corporate leaders, and improve the quality and performance of external directors. Improve the market-oriented operation mechanism, strive to promote the term system and contractual management work to improve the quality and expansion, strengthen rigid cash and assessment, and by the end of 2024, adjustment and incompetent exit related systems will cover no less than 70% of the second and third level subsidiaries of central enterprises.

Deepening reform around improving institutions. The State-owned Assets Supervision and Administration Commission of the State Council will continue to improve the reform promotion mechanism, and link the assessment of reform progress with the assessment of business performance, and the comprehensive assessment and evaluation of leaders and leading groups. Improve the supervision system of investors, improve the working mechanism of accountability for violations, and improve the efficiency of supervision.

"We plan to start the assessment of local SOE reform in 2023 in the first quarter of this year." The relevant person in charge of the reform office of the State-owned Assets Supervision and Administration Commission of the State Council said that the local state-owned Assets supervision and Administration Commission should constantly optimize the reform progress tracking and evaluation system to ensure that each reform task is captured, managed and responsible for the end.

Source: SASAC of The State Council