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SASAC Dynamics

Hao Peng: Strategic position and historical mission of state-owned enterprises in the new era

Release time:2018-05-30

The 19th National Congress of the Communist Party of China has made new arrangements for improving the management system and deepening the reform of state-owned enterprises. This year is the first year to implement the spirit of the 19th National Congress of the Communist Party of China. How to meet the state-owned enterprises in the new era? How to deepen the reform of state-owned enterprises in the new era? To solve these problems, Hao Peng, Secretary of the Party Committee of the State-owned Assets Supervision and Administration Commission (SASAC) under the State Council, accepted our interview, telling the strategic positioning, historical mission, and new goals and measures of the reform and development of state-owned enterprises in the new era.


Reporter: Socialism with Chinese characteristics has entered a new era since the 18th National Congress of the Communist Party of China. What do you think the new era means for state-owned enterprises?


Hao Peng: General Secretary Xi Jinping solemnly declared that socialism with Chinese characteristics entered into a new era in his report delivered in the 19th National Congress of the Communist Party of China, marking that the new historical development orientation of the CPC and national undertakings. This is the basis for us to understand the situation clearly and plan to promote the work. To promote the party building in the reform and development of state-owned enterprises in the new era, we must accurately grasp the historical starting point where we are standing and deeply comprehend the significance of entering the new era for state-owned enterprises.


The new era means more responsibility. State-owned enterprises are the important material and political foundation of socialism with Chinese characteristics. For the purpose of consistent adhere to and develop socialism with Chinese characteristics, succeed in building a well-off society in all respects, and fully construct a modern socialist country, state-owned enterprises are required to bravely carry heavy burdens and undertake responsibly, have the courage and unswervingly do a good job in operating state-owned enterprises, and firmly make state-owned capital stronger, better and bigger.


The new era means greater challenges. Domestically, we need to solve the contradiction between the increasing need of people for a better life and imbalanced and insufficient development, and promote our country's economy march towards the high quality development stage from the high-speed growth stage. From the international perspective, China is getting closer to the center of the world stage, and the competition tends to more intense in the world. Faced with the unprecedented challenges and requirements brought by these, state-owned enterprises must rise to the difficulties, be dare to accept challenges, and be good at recruiting measures, so as to speed up development and solve problems.


The new era means new opportunities. In the new era, there are both challenges and opportunities. It is key for us to see accurately, seize steadily and use these well. The party and national cause will certainly have a great development in the implementation of the spirit of the 19th National Congress of the Communist Party of China. This will create a good macro environment and expand the development space more for state-owned enterprises. As a result state-owned enterprises can promote the layout optimization, structure adjustment, and strategic restructuring in a broader field, within a wider range, and on a higher level, to speed up the cultivation of a batch of globally competitive world-class enterprises.


Based on the new era and the new orientation, state-owned enterprises are becoming competitors with international advanced enterprises from pursuers of leap-forward development, and have become a leader in many fields and industries. We are more convinced that state-owned enterprises should and be sure to do more in the new era.


Reporter: Since the founding of new China, state-owned enterprises have been the mainstay of expanding China's overall national strength and promoting economic and social development. How should we recognize the historic contribution made by and historic role of state-owned enterprises on the great journey after entry into the new era?


Hao Peng: State-owned enterprises have made historical contribution for promoting China's economic and social development, progress of science and technology, construction of national defense, and improvement of the people's livelihood throughout China's socialism construction, and reform and development, so as to ensure the effective implementation of the national strategies. After the founding of the People's Republic of China, state-owned enterprises have established historic merit for setting up of the independent and complete industrial system and national economic system. Since the reform and opening up, the reform of state-owned enterprises has been the central part of the reform of the economic system and always playing a leading role. Since the 18th National Congress of the Communist Party of China, in particular, state-owned enterprises have reformed and innovated, forged ahead, and overcome difficult in the new campaign in the new era, and taken firm steps on the way to become larger, better, and bigger, obtaining significant results. The central enterprises have enhanced their strength obviously, and their total assets increased by 74% compared with that of five years ago, and their cumulative profit grew by 27% compared with that over the past five years. Among the state-owned enterprises included in the world top 500, 48 are central enterprises. State-owned enterprises’ layout structure has been optimized obviously, and the state-owned capital concentrated in the important industries and key areas with a close relationship with the national security, lifelines of the national economy, and the people's livelihood, and also the forward-looking strategic emerging industries and superior enterprises. The slimming and fitness effect of state-owned enterprises was obvious, and the reorganization and integration steps were accelerated. 18 groups, including 34 central enterprises were reorganized, and the rigid control and pressure reduction was carried out steadily. State-owned enterprises increased their social contribution significantly, and the central enterprises paid taxes and fees, 41% up compared to those over the previous five years. In 2017 the added value created by state-owned enterprises accounted for about 8% of total GDP of China, and the taxes and revenue paid by state-owned enterprises accounted for about 1/8 of the total national fiscal income. A large number of national key achievements undertaken and completed by state-owned enterprises have become national business cards, which fully demonstrate the national strength and reflect the responsibility of the major power. State-owned enterprises also took the lead in combating major natural disasters, promoting poverty alleviation and participating in the construction of the people's wellbeing. The development of state-owned enterprises is a vivid reflection of the historic achievements and changes of the Party and national undertakings. These achievements were realized relying on the strong leadership of the CPC Central Committee with Comrade Xi Jinping as the core and the scientific guidance of Xi Jinping's socialist ideology with Chinese characteristics in the new era. It is precisely because the important thought of General Secretary Xi Jinping has been insisted on during the reform and development of state-owned enterprises and the party building, the reform and development of state-owned enterprises had the scientific guidance and action program available in the new era.


Reporter: Turning to the high quality development stage is the basic characteristic of China's economic development in the new era. Adapting to this new requirement, how can we find the strategic positioning of the state-owned enterprises and allow them clearly bear the historical mission in the new era?


Hao Peng: The new journey opened in the new era is the one to advance the great cause, realize the grand blueprint, create a better life, realize the great dream, and approach to the center of the world stage. This requires state-owned enterprises to make clear strategic positioning, take on historical missions, keep forging ahead, and make innovations on the new journey.


General Secretary Xi Jinping has always attached great importance to the reform and development of state-owned enterprises and party construction, and stressed the status and role of state-owned enterprises. Last December, General Secretary Xi Jinping made his first investigation after the 19th National Congress of the Communist Party coming to Xugong Group, Jiangsu, stressing that state-owned enterprises are the important material and political foundation of socialism with Chinese characteristics and also the "pillar" of the socialist economy with Chinese characteristics. With such forceful instructions, General Secretary Xi Jinping pointed clearly out the strategic positioning of state-owned enterprises in the new era, which can be grasped from the following six aspects. Firstly, we should firmly put political construction first and become it into the most reliable force for the party and the state. Secondly, we should always carry heavy burdens during the national development, national defense security and improvement of the people's lives, and become an important force in firmly carrying out the decisions and deployment of the CPC Central Committee. Thirdly, we should adhere to deeming the supply-side structural reform as the main line, constantly push forward the institutional and mechanism innovation, and become an important force for implementing the new development concept and comprehensively deepening the reform. Fourthly, we need to carry out international operation, speed up the formation of new advantages in international economic cooperation and competition, expand the new space for international development continuously, and become an importance force to implement the strategy of "Going out", "the Belt & Road" Initiative, and other major strategies. Fifthly, we should adhere to the people-centered development idea, earnestly fulfill our social responsibilities, and become an important force for strengthening overall national strength, promoting economic and social development, ensuring and improving people's wellbeing. Sixthly, we should build our basic team properly and make it an important force for our party to win the great struggle with many new historical features.


On the basis of clearly defining the strategic positioning in the new era, state-owned enterprises will take on their own historical mission. According to the requirements of changing from "have or not" to "good or not", state-owned enterprises will profoundly grasp main changes in the social contradictions in China, insist on quality first and efficiency first, take the lead in the implementation of quality change, change efficiency, and dynamic change with the supply-side structural reform as the main line, and be determined to become the main force of high quality development; promote the optimization and upgrading of the real economy according to the requirements of crossing the pass, become stronger in the industry and better in the main business, and play a leading role in building a modern economic system; strive to promote the construction of socialist modernization, succeed in the three major uphill battles, fully promote the innovative development, and play the role of commando in accelerating the construction of an innovative country; grasp the great pattern and trend of China's reform and opening up, play a role of a national team participating in the construction of "the Belt & Road Initiative", promote the cooperation in international production capacity and equipment manufacturing, actively participate in the formulation of global technical standards, industrial norms, and trade rules, better integrate into the global innovation and industrial system for division of labor, and speed up cultivating world first-class enterprises with outstanding main business, leading technology, advanced management, excellent performance, and strong allocation ability of global resources.


Reporter: What new measures will be taken for the reform and development of state-owned enterprises in the face of the new goal and new requirements in the new era in the future?


Zhao Shuanglian thanked the Yunnan Provincial Party Committee of the CPC and Provincial People's Government for concern and support of COFCO’s project in Yunnan, and expressed that COFCO would play its advantages in tea, sugar, commercial real estate and other fields, speed up the construction of the tea industry base integrating processing, scientific research, storage, logistics, and experience of Puer Tea in Yunnan, upgrade the traditional industries with modern production technology, and improve the level of digitalization, intellectualization and modernization of the tea industry; intensify efforts to promote the merger and reorganization of tea enterprises and change the situation of the tea industry in Yunnan where tea brands are jumbled, tea enterprises are small, and the production technology is backward. In addition, the two parties will work together to accelerate the planning, transformation, merger and acquisition of the sugar cane field and strive to form a sugar production capacity of 500,000 tons in Yunnan within two to three years in the sugar industry. In order to implement the strategic advance of "Lancang River-Mekong River Cooperation Mechanism", COFCO will carry out research on building a grain logistics base for rice processing and sales in Southeast Asia.


Zong Guoying, Standing Committee Member of Yunnan Provincial Party Committee of the CPC and Executive Vice Governor of Yun Province, Chen Shun, Vice Governor of Yun Province, Yang Jie, Secretary-General of Yunnan Provincial Government, Wang Minzheng, Director of Agricultural Office of Yunnan Provincial Party Committee and Head of Yunnan Provincial Agriculture Department, He Ligui, Deputy Secretary-General of Yunnan Provincial Government, Du Yong, Director of Yunnan Provincial Bureau for Attracting Investment, Yang Jian, Governor of Dali Prefecture, Yan Jianhao, President of China Tea Industry Co., Ltd., Liu Yun, Director of Administrative Office of COFCO, Wang Zhiying, Chief Director of HR Department of COFCO, Xia Linghe, President of China Sugar Industry Co., Ltd., Wang Guiqing, General Manager of China Tea Industry Co., Ltd., and others attended the meeting.