The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) took the focus on the high-level socialist market economy system as one of the overall goals of further deepening the reform in an all-round way, and comprehensively deployed specific measures to deepen the reform of state-owned assets and state-owned enterprises. The reform and development of state-owned enterprises is related to the construction and improvement of a high-level socialist market economy system.
Mainland state-owned enterprises are building socialism
In the process of market economy, it continues to grow and develop
The socialist market economy is a great initiative of the mainland in exploring the road of socialism with Chinese characteristics, which has pioneered the integration of socialism with the market economy, broken through the trap of the traditional planned economy completely rejecting market regulation, and also solved the drawbacks of Western market fundamentalism. State-owned enterprises are an indispensable and key link in the process of building a socialist market economy. In 1993, the Third Plenary Session of the 14th CPC Central Committee formulated the Decision of the CPC Central Committee on Several Issues Concerning the Establishment of a Socialist Market Economic System, which clarified the basic framework of the socialist market economic system. The document points out that it is necessary to change the operating mechanism of state-owned enterprises and establish a modern enterprise system, which is the foundation of the socialist market economic system with public ownership as the mainstay.
Since the reform and opening up, the reform process of state-owned enterprises can be roughly divided into four stages: from 1978 to 1992, the period of "delegating power and giving profits", this period was mainly to transform state-owned enterprises into enterprises with independent management rights, promote the separation of enterprise ownership and management rights, reduce the constraints of government departments on the planning of state-owned enterprises, so that state-owned enterprises can gradually adapt to the changes in the general environment of commodity production and circulation. Through the expansion of autonomy, the implementation of the contract management responsibility system, and the transformation of the enterprise management mechanism, the enthusiasm of enterprises in production and operation has been greatly mobilized, and a production and supply mechanism that can respond to market demand has been initially formed, laying the foundation for the formation of a market economy. From 1993 to 2002, the period of "system innovation", the construction of a modern enterprise system with clear property rights, clear rights and responsibilities, separation of government and enterprises, and scientific management was clearly defined as the direction of reform of state-owned enterprises, and the institutional mechanism associated with the market was accelerated, and the capital operation mode, property rights arrangement structure, and corporate governance model that meet the requirements of the socialist market economy were gradually established. It also provides a broad market space for the development of the economy of other ownership systems. From 2003 to 2012, during the period of "state-owned assets supervision", the establishment of state-owned assets supervision and administration commissions at all levels was the main symbol, which solved the stubborn disease of state-owned enterprises for a long time from the system, and the state-owned assets supervision system was basically formed, straightened out the relationship between the government and enterprises, and further optimized the layout of the state-owned economy, especially the monopoly state-owned enterprises to deepen the reform and promote the socialist market economy system to be more perfect. The fourth stage is the 18th National Congress of the Communist Party of China to the present.
Judging from the experience of the reform and development of state-owned enterprises before the 18th National Congress of the Communist Party of China, state-owned enterprises have continued to grow and develop in the process of building a socialist market economy, and at the same time, they have also laid a solid foundation for the socialist market economy system. First, state-owned enterprises have gradually become qualified market entities that can adapt to the socialist market economy, and a complete production and operation system and mechanism have been formed that are guided by market demand, based on market competition, and guided by market prices. Second, the state-owned assets supervision system has completed the institutional arrangement of "separation of government and enterprises, separation of government and capital", state-owned enterprises have achieved remarkable results in independent operation, and the regulatory departments have built system rules and regulations through enterprise property rights management, asset supervision, and performance appraisal of enterprise leaders. Third, through the restructuring of the layout of the state-owned economy, the fields involved in state-owned enterprises have become more and more concentrated, and the control of the national economy has been strengthened, which has also contributed to the formation of a fairer market competition environment.
The modern new state-owned enterprises are high-level socialism
The key force of the market economic system
Since entering the new era, the development of state-owned enterprises in the mainland has ushered in a new historical opportunity, the reform of state-owned assets and state-owned enterprises has achieved remarkable results, the party leadership and party building of state-owned enterprises have been fundamentally strengthened, the layout and structure of the state-owned economy have been significantly optimized, and the state-owned assets supervision system has been further improved. An important aspect of the "new" embodied in the "modern new state-owned enterprises" is to adapt to the requirements of the high-level socialist market economic system and become a key force in building a high-level socialist market economy.
Figure: Employees of the China Information Technology Chutian Cloud Data Center are maintaining relevant data
The independent innovation capability of modern new state-owned enterprises has been significantly enhanced, and the core competitiveness has become more prominent. The innovation system of state-owned enterprises, especially central enterprises, has been reshaped and strengthened, the innovation incentive mechanism has been continuously improved, and the innovation efficiency has been continuously improved. In order to further support the innovation and development of state-owned enterprises, the State-owned Assets Supervision and Administration Commission of the State Council set up a Science and Technology Innovation Bureau in 2022, and successively issued the "Guiding Opinions on Accelerating the Creation of Original Technology "Sources" and "Chain Lengths" of Modern Industrial Chains by Central Enterprises" and "Opinions on Systematically Promoting the Construction of Scientific and Technological Innovation Incentive and Guarantee Mechanisms for Central Enterprises" to comprehensively promote the innovation and development of central enterprises. State-owned enterprises have made a number of major scientific and technological achievements of landmark significance in the fields of manned spaceflight, lunar exploration projects, deep-sea exploration, and Beidou navigation, and have completed a number of landmark major projects such as the Hong Kong-Zhuhai-Macao Bridge, Baihetan Hydropower Station, "Shenhai No. 1" oil and gas field, Hualong No. 1 nuclear power unit, and Shidaowan high-temperature gas-cooled reactor nuclear power plant demonstration project, which have played a leading role in the field of scientific and technological innovation and provided key support for major national needs. The ability of independent innovation has become an important feature of modern new state-owned enterprises, the core magic weapon of modern new state-owned enterprises to be invincible in competition, the main support for the core competitiveness of enterprises, and the high-quality development of the mainland economy.
Modern new state-owned enterprises have formed a more perfect modern enterprise system with Chinese characteristics to provide institutional guarantee for giving full play to their core functions. State-owned enterprises have fully implemented the "two consistency", the construction of a modern enterprise system with Chinese characteristics has become more and more complete, the institutional system has gradually matured and finalized, and the management ability and efficiency of enterprises have been gradually improved. In 2021, the central government issued the "Opinions on Strengthening the Party's Leadership in Improving Corporate Governance of Central Enterprises", based on strengthening the party's leadership in improving corporate governance, clarifying the powers, responsibilities and working methods of the party committees (party groups) of central enterprises in decision-making, implementation, supervision and other links, and promoting the integration of the party's leadership into the institutionalization, standardization and proceduralization of corporate governance. Central enterprises and their important subsidiaries, local enterprises and their important subsidiaries have all formulated a pre-research list, the boundaries of the rights and responsibilities of each governance entity have become clearer, the construction of the board of directors has been further strengthened, and state-owned enterprises at all levels have basically realized that the board of directors should be fully established, and the majority of external directors should be in principle. The modern enterprise system with Chinese characteristics has laid a solid institutional guarantee for state-owned enterprises to better play their core functions, and vigorously promoted the organic unity of the economic, political and social attributes of state-owned enterprises.
Modern new state-owned enterprises have a more flexible market-oriented operation mechanism, helping to create a fairer and more dynamic market environment. The operating efficiency of state-owned enterprises has been continuously improved, and the flexible and efficient market-oriented operation mechanism has been gradually improved, which has effectively stimulated the enthusiasm of managers and key employees. The state-owned assets supervision department has successively delegated the right to make decisions on development, the right to select and hire managers, the right to evaluate performance, the right to pay salaries, the distribution of employees' wages and major financial matters to state-owned enterprises that have established standardized boards of directors, and other important powers, so as to accelerate the market-oriented operation of enterprises. Comprehensively deepen the reform of the three systems of labor, personnel and distribution, and promote the realization of "cadres can be promoted or demoted, personnel can be promoted and discharged, and salaries can be high or low", and market-oriented employment systems such as open recruitment, competitive employment, and performance appraisal of all employees are widely implemented. State-owned enterprises run the society and solve the problems left over from history in an all-round way, and the "three supplies and one industry" of the state-owned assets system supervised by the national state-owned assets system have basically completed the separation and transfer. Actively promote the tenure system and contractual management of managerial members, and carry out various forms of medium and long-term incentives. Modern new state-owned enterprises have become more competitive independent market players and participate in the operation of the socialist market economy with a more active appearance.
The layout of modern new state-owned enterprises has been continuously optimized, structural adjustment has been steadily promoted, and the leading role of the state-owned economy has been continuously enhanced. Under the guidance of the "Opinions on Promoting the Optimization of the Layout and Structural Adjustment of the State-owned Economy in the New Era" issued by the central government, state-owned enterprises have adhered to the principle of advancing and retreating, doing something and leaving something undone, further focusing on their main responsibilities and main businesses, and promoting the concentration of state-owned capital in important industries and key areas related to national security and the lifeline of the national economy, in important industries and key areas related to the national economy and people's livelihood, such as the provision of public services, emergency capacity building and public welfare, and in forward-looking strategic emerging industries. A number of central enterprises and local state-owned enterprises have implemented strategic restructuring in a market-oriented manner, and the professional integration has continued to deepen, so as to promote the state-owned economy to better serve the national strategy. Breakthroughs have been made in the layout of strategic emerging industries, providing strong support for the development of new productive forces. In 2023, the central enterprises will invest 2.18 trillion yuan in strategic emerging industries, a year-on-year increase of 32.1%, and a number of key projects will be implemented in the fields of photovoltaic hydrogen production, carbon fiber manufacturing, and automotive chips, and a modern new state-owned enterprise in the fields of laser manufacturing, quantum communication, and satellite Internet will be established.
Efforts should be made to build socialism that is more suitable for a high level of socialism
A modern new state-owned enterprise required by the market economy system
The high-level socialist market economy system is an important guarantee for Chinese-style modernization, and the new modern state-owned enterprises should better adapt to the requirements of the high-level socialist market economy system, promote state-owned capital and state-owned enterprises to become stronger, better and bigger, enhance their core functions, and enhance their core competitiveness.
First, we need to build institutional mechanisms that better support innovation. The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) will build and support comprehensive innovation systems and mechanisms as the key direction of reform. Strong scientific and technological innovation capability is an important factor for many world-class enterprises to grow into global giants, and an important support for their strong market competitiveness. In order to create a flexible scientific and technological innovation management system, in the process of assessment and evaluation, we should improve the incubation rate of scientific and technological innovation with original advantages of state-owned enterprises with a higher fault tolerance rate and a longer-term perspective, and continuously promote state-owned enterprises to improve innovation efficiency and strengthen scientific and technological strength. Take innovation as the first driving force to lead the reform and development of state-owned enterprises, insist on relying on innovative talents, and tilt capital investment to talent training. Actively explore an effective state-owned capital investment model, through the reorganization and establishment of state-owned capital investment companies and operating companies, control investment risks within a tolerable range, and carry out investment financing, industrial cultivation, and capital integration.
Second, improve the reform of the classification of state-owned enterprises. Focusing on the core functions of state-owned enterprises, further promoting the classification reform will create favorable conditions for modern new state-owned enterprises to enhance their core competitiveness and enhance their core functions. At present, the classification of state-owned enterprises has achieved positive results, but in practice, the classification method can be further refined, and the core functions played by different state-owned enterprises are quite different, and the assessment and evaluation mechanism is difficult to effectively distinguish. Some enterprises have complex internal business, and there may be a one-size-fits-all situation, which can easily cause a vacuum in the application of policies. The classification of state-owned enterprises can be refined around the core functions or missions of enterprises, and the assessment and evaluation mechanism can be improved in a targeted manner. Highlight the implementation of the main responsibility of enterprises, and supervise and guide state-owned enterprises to establish a correct performance outlook from various aspects such as assessment and distribution, cadre management, party building and clean government. By deepening the classification reform, state-owned enterprises will be given a clearer mission orientation, a clearer arrangement of rights and responsibilities, and a broader market-oriented operation space.
Third, adhere to the direction of socialist market economy reform and continue to improve the modern enterprise system with Chinese characteristics. In the face of the major mission of promoting Chinese-style modernization with high-quality development, state-owned enterprises should continue to improve the modern enterprise system with Chinese characteristics. Adhere to the party's leadership over state-owned enterprises, unify the strengthening of the party's leadership with the improvement of corporate governance, effectively integrate the party's leadership into all aspects of corporate governance, and ensure that the core functions of state-owned enterprises are fully completed. At the same time, it is necessary to improve the decision-making mechanism for the operation of state-owned enterprises, promote state-owned enterprises to become independent market operators that operate independently, bear their own risks, and exercise self-restraint, so that state-owned enterprises can produce and operate more through market-oriented means, and obtain the benefits or risks brought about by production and operation through market-oriented mechanisms, so as to enhance the core competitiveness of state-owned enterprises.
Fourth, carry forward the entrepreneurial spirit of modern new state-owned enterprises. Modern new state-owned enterprises have the space and environment for entrepreneurs to display their talents, and have the conditions for cultivating outstanding entrepreneurs and entrepreneurial spirit. Leaders of state-owned enterprises not only assume the functions of general entrepreneurs, but also need to integrate production resources and optimize business strategies to complete the special functions and missions of state-owned enterprises, so the entrepreneurial spirit contained in excellent leaders of state-owned enterprises has a richer connotation, and they must have a firm political awareness, resolutely implement the principles and policies of the party and the state, deeply integrate into major national projects, and actively participate in the implementation of national strategies; consciously stand on the people, practice the fundamental purpose of serving the people wholeheartedly, and take the people's yearning for a better life as the goal of struggle; Strict moral and professional requirements, and a more perfect restraint mechanism for party discipline and supervision, require them to become exemplary examples of law-abiding and discipline-abiding, honest and self-disciplined. It is necessary to vigorously publicize the advanced deeds and outstanding contributions of outstanding leaders of state-owned enterprises, and create a strong social atmosphere in which the value of entrepreneurs is respected, entrepreneurs are encouraged to innovate, and their role is brought into play.
This paper was awarded the Basic Research Project of the Think Tank of the Chinese Academy of Social Sciences
"Research on Building a Modern New State-owned Enterprise" (23ZKJC041).
The author is deputy director of the Political Economy Research Office of the Institute of Economics, Chinese Academy of Social Sciences
Source: State-owned Assets Report, Issue 9, 2024