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What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

author:The Secret History of Fukan
What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

The statements in this article are based on reliable sources and are repeated at the end of this article

In the eyes of the elders, either enter a state-owned enterprise, or enter a central enterprise, or go to become a civil servant, in addition to being a national officer, it is considered a serious job, and go to all other private enterprises, no matter what occupation, will be urged by the elders to find a "serious job" quickly.

I always feel that state-owned enterprises and central enterprises are the obsession of the elders, because in their era there were only state-owned enterprises and central enterprises, the threshold is much lower than now, and the benefits and salaries are very good.

Until now, state-owned enterprises (SOEs) and state-owned enterprises (SOEs) are still two concepts that are often mentioned in China's economic system, but with the development and change of the times, the two have different differences.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

01

The past and present of state-owned enterprises and central enterprises

"Our unit has given out a bonus of 5 yuan this month!"

The word "unit" is now like a mature and stable big brother at work, and the younger ones are called "our company", and "unit" generally represents important enterprises and departments.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

Before and after the founding of the People's Republic of China, in order to quickly recover and develop the economy, the state began to establish state-owned enterprises, which were mainly funded by the government and directly managed and controlled by the government.

The beginning of the development of state-owned enterprises can be traced back to the 50s of the last century.

On September 29, 1949, the first session of the Chinese People's Political Consultative Conference unanimously adopted the "Common Program of the Chinese People's Political Consultative Conference," proposing that the state-run economy should be an economy of a socialist nature.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

This is the predecessor of the concept of "state-owned enterprises", according to the plan: those industries that have an important impact on the lifeblood of the country's economy and can control the livelihood of the people should be managed and operated by the state.

It was not until the completion of the three major transformations that the mainland entered the era of reform and opening up, and what was advocated at that time was a planned economy, that is to say, there was not a single private enterprise in that era.

Even a roadside restaurant is a state-owned enterprise, and the commissary is under the jurisdiction of the supply and marketing cooperative.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

Before the unification of the state-run economy, the wave of "public-private partnership" was still blowing for a while, which was also an important reason for the demise of private enterprises.

At that time, many private enterprise owners voluntarily joined the public-private partnership, and later some government cadres were transferred to private enterprises to preside over the work, and it was only in 1966 that the private enterprises were converted into enterprises owned by the whole people.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

In the process of reform and opening up in the last century, state-owned enterprises began to face difficulties such as rigid systems and backward management, and urgently needed to carry out a new round of economic structural reform to enhance their competitiveness and efficiency.

The state through the introduction of market mechanisms, improve management, optimize the allocation of resources and other ways to promote the transformation of state-owned enterprises to marketization, modernization, is in this process, the central enterprises began to emerge gradually.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

In 1978, state-owned enterprises decided to slowly separate from the collective economy, which is one of the reasons why state-owned enterprises and central enterprises are included and included.

State-owned enterprises include central enterprises, of which central enterprises are also divided into "pan-central enterprises" and "generalized central enterprises", and some of the enterprises in the pan-central enterprises are only under the banner of central enterprises, but in fact do not belong to the real central enterprises.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

02

What is the definition of a central enterprise?

State Grid, China Mobile, China Unicom, China Telecom, China National Nuclear Corporation, etc. are real central enterprises.

It should not be difficult to find that the names of central enterprises contain the word "China", and some of them start with "China".

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

Under the division of the governance model, the central enterprises are directly managed by the central government, their senior executives are appointed by the central government, and all the equity of the central enterprises is funded by the central government, and the boss of the central enterprises is the central government and the State Council.

Generally speaking, central enterprises are large state-owned enterprises, and their personnel relations are listed separately in the Ministry of Human Resources and Social Security, which also means that major central enterprises have complete cadre management authority, including training, promotion, appointment, retirement management, etc.

There is a very special position in the central enterprises - party secretary.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

The secretary of the party committee in the central enterprise is mainly responsible for the positive ideological education and leadership of the enterprise, timely conveying the development decisions issued by the party central committee, and holding seminars on this.

From the perspective of administrative level, the party secretary can be regarded as the chairman of the board of directors in the enterprise, and is the "number one", and now there are many central enterprises are party secretaries, part-time chairman or deputy party secretary.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

Central enterprises are mainly engaged in the business activities of national strategic industries and key areas, because as an important pillar industry of the country, the development strategy of central enterprises is generally more long-term and planned, focusing on technological innovation and sustainable development, such as energy, transportation, finance, etc.

The central enterprise is an indispensable implementer in the development of the national strategy, although it is separated from the state-owned enterprise, but this does not mean that all these enterprises can become central enterprises.

There are 460,000 state-owned enterprises in mainland China, of which only 98 are central enterprises, and most of them are established in Beijing, and even none of these 98 central enterprises are small-scale enterprises.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

So the question is: is it considered to be in the system when you work in a central enterprise?

There are three characteristics of work within the system, the first is the issue of establishment, then whether the unit is funded by the state treasury, and the last point is whether the staff position belongs to public affairs management or public service.

Only when all these three conditions are met can it be called a job within the system, such as the work of teachers and administrative staff within the system.

For example, this is an employee who exists in a local public school or public institution and is deployed by the local education bureau or relevant departments.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

The Education Bureau is a state administrative unit, and it is neither a state-owned enterprise nor a central enterprise, so the civil servants who work in the state unit belong to the civil servants who perform state administrative duties and perform state official duties.

Therefore, civil servants are administrative units, public institutions are public institutions, and central enterprises are called in the system because the central enterprises implement a post management system, which can be said to be an enterprise organization.

In general, the central enterprises belong to the system, but not completely, but this is not important, the important thing is that although the central enterprises are independent decision-making and self-financing, the central enterprises rely on the State-owned Assets Supervision and Administration Commission under the State Council to contribute to the development of the country no matter from that point.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

03

What is a state-owned enterprise?

When an enterprise indicates its state-owned identity, ownership structure, especially the information of major shareholders in its public information, if it specifically indicates that it is a state-owned shareholder or state-controlled shareholder, it is very likely that it is a state-owned enterprise.

State-owned enterprises refer to enterprises controlled and managed by the State-owned Assets Supervision and Administration Commission of the State Council, local governments and local State-owned Assets Supervision and Administration Commissions, of which the state holds more than 50% of the shares of the enterprises, and the holding of 100% is wholly state-owned enterprises.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

To put it simply, SOEs are directly or indirectly managed by local governments.

In terms of management mode, state-owned enterprises and central enterprises are very different, many state-owned enterprises are subordinate to different departments of the local government or the central government, so their management level is more complex, and many state-owned enterprises are not large in scale and do not have many employees.

Because the size and influence of SOEs vary from industry to industry and region, SOEs have a wide range of businesses, covering various industries and fields, such as catering, tourism, and hospitality, and the development of SOEs is more focused on short-term economic benefits and market competitiveness.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

In the process of reform, central enterprises often take the lead in carrying out reform pilots under the guidance of national reform policies, while state-owned enterprises are gradually promoted according to the reform plans of local governments and actual conditions.

SOEs are managed by local governments or industry authorities, and their leaders are also appointed by the above-mentioned relevant departments.

04

State-owned enterprises VS central enterprises

In the eyes of the elders, the biggest common denominator between state-owned enterprises and central enterprises is that they work very steadily in these two major enterprises.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

The status of central enterprises is undoubtedly much higher than that of state-owned enterprises, which directly serve the country and the people and are the pillar enterprises of the national economy, while state-owned enterprises focus on local service economic development.

In addition, the administrative level of central enterprises is also higher than that of state-owned enterprises, and the average salary, welfare and allowances of central enterprises are also higher than those of state-owned enterprises.

It is not difficult to see from the number of central enterprises that only strong and indispensable enterprises are qualified to be central enterprises, not to mention that central enterprises are known as the top enterprises in the mainland.

What is the difference between state-owned enterprises and state-owned enterprises? Which of the two has a higher status? Many people are easily confused

After understanding everything, it is not difficult to find that whether it is a state-owned enterprise or a central enterprise, they play an important role in China's economic system as a state-owned enterprise.

State-owned enterprises bear the important task of promoting national economic development, and state-owned enterprises play their respective advantages in different industries and regions, and make important contributions to local economic development.

Resources:

[1] State-owned Assets Supervision and Administration Commission of the State Council: List of Central Enterprises - State-owned Assets Supervision and Administration Commission of the State Council

[2] CPPCC Network: The common program of the Chinese People's Political Consultative Conference