State-owned enterprises (SOEs) are an important material and political foundation of socialism with Chinese characteristics and serve as the “backbone” of the economy.
Over the 75 years since the founding of the People’s Republic of China (PRC), under the strong leadership of the Communist Party of China (CPC), SOEs have achieved remarkable progress in reform and development, making historic contributions to the country’s economic and social development, scientific and technological advancement, national defense development, and improvement of people’s livelihoods.
Underpinning the national economy
In July this year, the 9 millionth Jiefang truck, independently developed by China FAW Group Co., Ltd., rolled off the production line in Changchun, Jilin province. More than 70 years ago, this company started from scratch and started production three years later, ending the era when New China could not manufacture cars.
The evolution of the Jiefang truck over seven generations reflects the profound changes in China’s automotive industry and confirms the close relationship between the development of SOEs and the nation.
When the PRC was founded in 1949, industrial development was a crucial task. The production of the first Jiefang truck, the first “Dongfanghong” tractor, and the discovery and development of the Daqing Oilfield — these milestones marked the beginning of China’s industrialization.
Thanks to 75 years of hard work, SOEs have made impressive achievements.
In 1952, the total profit of state-owned industrial enterprises in China was 2.82 billion yuan ($ 0.40 billion), with a fixed asset value at 14.9 billion yuan.
Since the 18th National Congress of the CPC in 2012, the total assets of enterprises that are under the state-owned assets supervision system have grown from 71.4 trillion yuan in 2012 to 317.1 trillion yuan in 2023, with total profits rising from 2 trillion yuan in 2012 to 4.5 trillion yuan in 2023, seeing a significant increase in scale, strength, and quality efficiency.
Over 75 years of development, SOEs have strengthened public services and emergency response capacity. They are currently providing nearly 100 percent of the national crude oil output, 100 percent of the power grid coverage, as well as 97 percent of natural gas supply, and have established and operated a nationwide basic telecommunications network.
Stimulating sci-tech innovation vitality
This year, a number of key projects have made major breakthroughs, including the C919 homemade plane and sample collected from the far side of the moon by Chang’e-6, showcasing the “hardcore” scientific and technological strength of Chinese SOEs, particularly central SOEs.
Since the founding of the PRC, the country’s technological sector has made significant progress, and enterprises are increasingly holding the principled position in technological and industrial innovation since the 18th CPC National Congress. SOEs, as key players, prioritize technological innovation as their top task, and consistently drive development through innovation, yielding breakthroughs and technological achievements in large numbers and with higher quality.
Pooling advantageous resources to tackle “bottleneck” problems
In recent years, SOEs have organized millions of researchers to engage in frontline problem-solving programs, with focus on key areas such as industrial mother machines and industrial software, which has effectively stabilized industrial and supply chains. They have established 97 original technology development bases and implemented 11 special campaigns in fields like quantum information, deep space, and deep sea, and achieved breakthroughs in frontier areas like controllable nuclear fusion.
Breaking down institutional barriers and unblocking the "blood vessels" of innovation
In recent years, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has continuously improved its policies, ensuring full coverage of innovation assessments for industrial and research enterprises. During the 13th Five-Year Plan period (2016-2020), R&D investment by central SOEs increased by an annual average of 14.5 percent, with annual investment exceeding one trillion yuan in the past two years.
Promoting deep integration of technology and industry
Statistics show that in the first seven months of this year, central SOEs completed investments of over one trillion yuan in strategic emerging industries.
By implementing digital transformation initiatives and "AI+" special actions, and launching revitalization and future industry initiatives, SOEs are taking various measures to transform and upgrade traditional industries, cultivate emerging industries, and build future industries, providing robust support for the development of a modern industrial system.
Deepening SOE reform
“By 2029, scientific, rational, and efficient boards of directors should be established in central SOEs and subsidiary enterprises at all levels.” This requirement was set at a recent special work promotion meeting where SASAC clarified the specific goals and priorities for advancing the development of boards of directors in SOEs.
The establishment of boards of directors is a key component of the modern enterprise system with Chinese characteristics.
The continuous deepening of SOE reform is indispensable for the high-quality development of SOEs.
Entering the new era, SOEs are fully implementing policy framework for SOE reform and executing three-year action plans, achieving a series of breakthrough progress and significant results. The modern enterprise system with Chinese characteristics is continuously improving, structural adjustments are advancing, and SOEs and private enterprises are mutually reinforcing and developing collaboratively.
SOEs are striving to implement key tasks, advancing reforms with the bigger picture in mind and greater efforts, and better fulfilling new responsibilities and missions, in a bid to make greater contributions to advancing the building of a great country and national rejuvenation on all fronts through Chinese modernization.
(Executive editor: Zhu Zeya)
