Unwaveringly strengthen, optimize, and expand state-owned capital and state-owned enterprises.

State-owned Assets Supervision and Administration Commission of the State Council.

Since the 18th National Congress of the Communist Party, General Secretary **** has emphasized multiple times the need to uphold and improve the basic economic system of socialism, unswervingly consolidate and develop the public-owned economy, and unswervingly encourage, support, and guide the development of the non-public economy. The 20th Central Committee's third plenary session clearly proposed to adhere to and implement the 'two unwavering principles' and made strategic deployments for further deepening the reform of state assets and state-owned enterprises. State-owned capital and state-owned enterprises are important carriers and forms of the public-owned economy and play a crucial role in the process of modernization with Chinese characteristics. State-owned assets and enterprises should deeply study General Secretary ****'s important remarks on the 'two unwavering principles', keep the overall development of the Party and state affairs in mind, effectively enhance the sense of mission and responsibility, focus on strengthening core functions and enhancing core competitiveness, and accelerate the promotion of state-owned capital and state-owned enterprises to become stronger, better, and larger, providing strategic support for comprehensively advancing the construction of a strong country and the great rejuvenation of the nation.

1. Deeply understand the significant meaning of strengthening, optimizing, and expanding state-owned capital and state-owned enterprises.

A strong enterprise leads to a strong nation, and a thriving enterprise leads to a thriving nation. Strengthening, optimizing, and expanding state-owned capital and state-owned enterprises is closely related to the consolidation of our socialist system, the ruling position and capacity of our Party, and the realization of the second centennial goal, and it has profound theoretical basis, practical foundation, and realistic needs.

From the theoretical perspective, strengthening, optimizing, and expanding state-owned capital and state-owned enterprises is an essential requirement for upholding and developing socialism with Chinese characteristics. Since the 18th National Congress, General Secretary **** has delivered important speeches and made significant instructions on developing and expanding state-owned economy, emphasizing that state-owned enterprises are an important material and political foundation of socialism with Chinese characteristics, a significant pillar of the Party's governing power, and must be strengthened, optimized, and expanded. From the perspective of basic principles of Marxist political economy, the ownership of means of production is the core of production relations, determining the basic nature and direction of social development. China is a socialist country, and public ownership is the foundation of the socialist economic system. Upholding the main position of public ownership and playing a leading role for the state-owned economy is crucial for perfecting and developing the socialist system with Chinese characteristics. This role manifests itself in capital form and enterprise level, which means firmly promoting state-owned capital and state-owned enterprises to become stronger, better, and larger in development practice. On this major principled issue, a clear mind must be maintained, institutional confidence must be upheld, strategic determination must be strengthened, and consistent adherence and implementation must be ensured.

From a practical foundation perspective, strengthening, optimizing, and expanding state-owned capital and state-owned enterprises has made significant contributions to the development of the Party and state affairs. Since the 18th National Congress, under the strong leadership of the Party Central Committee with Comrade **** at its core, the reform of state-owned enterprises has continuously deepened, and the quality and efficiency of development have improved, providing strong support for China's economic and social development, technological progress, national defense construction, and improvement of people's livelihoods. From the perspective of central enterprises regulated by the State-owned Assets Supervision and Administration Commission, by the end of 2024, the total assets will reach 91.4 trillion yuan, which is 2.9 times that of the end of 2012; the added value will grow from 4.9 trillion yuan in 2012 to 10.6 trillion yuan in 2024; from 2012 to 2024, the total tax contributions accounted for about 1/7 of the national tax revenue, and 1.2 trillion yuan of state-owned capital was transferred to the social security fund; meanwhile, central enterprises effectively played a strategic supporting role, actively linking and implementing major national strategies, fully ensuring the supply of basic energy such as coal, electricity, oil, and gas, and the operation of infrastructure networks such as communications, aviation, and effectively contributing to poverty alleviation, rural revitalization, and responding to major natural disasters such as the COVID-19 pandemic, earthquakes, typhoons, and floods. Practice has fully demonstrated that in the development process of Party and state affairs, state-owned enterprises have continuously strengthened, optimized, and expanded, showcasing unique institutional advantages and playing an irreplaceable vital role.

From the perspective of real needs, strengthening, optimizing, and enlarging state capital and state-owned enterprises is an inevitable choice to promote a Chinese-style modernization. The 20th National Congress of the Party has drawn a grand blueprint for comprehensively advancing the construction of a strong country and the great rejuvenation of the nation through Chinese-style modernization. Currently, the world is undergoing unprecedented changes that have accelerated, with economic globalization encountering headwinds and competition among major powers intensifying. China's development has entered a period characterized by both strategic opportunities and challenges, with an increase in uncertain and unpredictable factors, where various "black swan" and "gray rhinoceros" events can happen at any time. Promoting Chinese-style modernization faces a more severe and complex situation, with tasks that are heavier and more arduous. State-owned enterprises are mainly in key industries and sectors that are related to national security and the lifeblood of the national economy. They are an important support for promoting sustained and healthy economic and social development in China and also a crucial force in maintaining national strategic security. We must resolutely push for state capital and state-owned enterprises to strengthen, optimize, and enlarge, center around the "two overall situations", serve the "major tasks of the nation", firmly fulfill our strategic mission on the new journey, effectively play a role in technological innovation, industry control, and security support, and provide solid guarantees for the steady progress of Chinese-style modernization.

II. Firmly grasp the contemporary connotation and practical requirements of strengthening, optimizing, and enlarging state capital and state-owned enterprises.

Strengthening, optimizing, and enlarging state capital and state-owned enterprises is a consistent requirement, with distinct contemporary characteristics and practical orientations. State-owned assets and enterprises should be guided by ****'s thought on socialism with Chinese characteristics for a new era, closely anchor the central tasks of the Party in the new era and new journey, accurately understand the rich connotation and core essence of strengthening, optimizing, and enlarging state capital and state-owned enterprises, clarify directions, highlight priorities, and make clear paths, striving to fully implement the decisions and deployments of the Party Central Committee in all areas of work.

Highlight the prominent political principle of upholding and strengthening the comprehensive leadership of the Party. General Secretary **** has repeatedly emphasized the need to uphold and strengthen the Party's comprehensive leadership over state-owned enterprises. State-owned enterprises are an important part of the Party-led national governance system. Only by upholding and strengthening the Party's comprehensive leadership can all work consistently progress in the right direction. Strengthening, optimizing, and enlarging state capital and state-owned enterprises must integrate Party leadership throughout all aspects and processes of work, fully leverage the Party's role in overseeing the overall situation and coordinating all parties, and ensure that the Party committee (Party group) of enterprises guides the direction, manages the broader picture, and ensures implementation, thereby better consolidating the strength of state assets and state-owned enterprises, actively fostering a sound political ecology characterized by integrity, and ensuring the resolute implementation of the decisions and deployments of the Party Central Committee.

Highlight the fundamental requirement of enhancing core functions and improving core competitiveness. The 20th National Congress and the third plenary session of the 20th Central Committee made significant deployments for state-owned enterprises to enhance core functions and improve core competitiveness. This is a strategic requirement proposed by the Party Central Committee with **** at the core, based on the "two overall situations" and is an important focal point for strengthening, optimizing, and enlarging state capital and state-owned enterprises. Enhancing core functions requires serving the overall situation and increasing support and guarantee capabilities; improving core competitiveness requires facing the market and creating unique competitive advantages; both depend on and promote each other. Strengthening, optimizing, and enlarging state capital and state-owned enterprises must closely anchor this fundamental requirement, uphold the foundation of the real economy, and focus on enhancing the value added, functional value, economic value added, the proportion of income and added value in strategic emerging industries, and brand value. The aim is to continuously strengthen functions such as strategic security, industrial leadership, national economy and people's livelihood, and public services, achieving a high-level organic unity of economic attributes, political attributes, and social attributes.

Highlight the distinct orientation of cultivating and developing new quality productivity. General Secretary **** has deeply observed the trend of technological revolution and industrial transformation and creatively proposed the development of new quality productivity, which is a significant advancement in Marxist production theory. Currently, global technological innovation activities have entered an intensive and active period. New technologies such as Big Data and AI are bringing profound changes to the economy and society, making traditional development models unsustainable. Therefore, developing new quality productivity is no longer an "optional task" but an "essential question". Strengthening, optimizing, and enlarging state capital and state-owned enterprises must unswervingly focus on the "new" by vigorously promoting the transformation and upgrading of traditional industries, actively expanding into new fields and new tracks, and accelerating the formation of production relations that are more adapted to new quality productivity. This will ensure that the high-quality development of enterprises reflects more technological content, truly built on the basis of improving total factor productivity and reshaping the production function, leading to a leap in the quality of productivity.

Highlight the important concept of deepening cooperation for mutual benefit. Both the public ownership economy and the non-public ownership economy are important components of the socialist market economy, and state-owned enterprises and private enterprises are significant forces in promoting sustained and healthy development of the national economy. Promoting Chinese-style modernization provides an immensely broad stage for the cooperative development of various enterprises. Strengthening, optimizing, and enlarging state capital and state-owned enterprises must fully leverage their own advantages and leading and driving roles, adhere to development in openness, and grow in competition, continuously deepening cooperation with various enterprises, promoting various ownership economies to use production factors legally and participate fairly in market competition, accelerating the construction of an orderly competitive and mutually beneficial ecosystem, forming a favorable situation of "common progress among the people", and contributing together to high-quality economic development.

Highlight the bottom line thinking of coordinating development and security. Currently, state-owned enterprises face numerous difficulties and challenges, facing impacts from both a severe and complex external situation as well as practical issues such as an imperfect industrial structure and intermittent momentum. These difficulties and challenges arise during the process of reform and development, industrial transformation, and upgrading. They are localized rather than global, temporary rather than long-term, and can be overcome rather than unsolved. Strengthening, optimizing, and enlarging state capital and state-owned enterprises must firmly establish the concept of safe development, maintaining confidence while staying vigilant, and prepare well to respond to various risks and challenges, capturing development opportunities in a complex and changing environment, continuously enhancing hard power to resist risks, and promoting a benign interaction between high-quality development and high-level security.

Steadfastly promote the strengthening, optimizing, and expanding of state-owned capital and state-owned enterprises.

Strengthening, optimizing, and expanding state-owned capital and state-owned enterprises is a long-term and arduous task, with key points being to ensure implementation, take action, and achieve results. State-owned assets and enterprises must continuously deepen reforms, strengthen innovation, and optimize their layout, working together to continuously improve overall work efficiency.

Focus on improving the quality and efficiency of enterprise development. Deeply implement special actions to enhance quality and efficiency, strengthen economic operation analysis, proactively adapt to changes in market demand, continuously increase the supply of high-quality products and services, enhance efforts to expand markets and increase revenue while reducing costs, and solidify the foundation for sustained and healthy development. Persist in expanding effective investment, using the preparation and implementation of the enterprise's "14th Five-Year Plan" as an opportunity, focusing on technology attributes, technological value, and emerging fields, promoting the implementation of a number of key projects that strengthen the chain and supplement it, striving to cultivate new growth points and form a virtuous cycle of endogenous growth. Continuously improve the quality of central enterprises holding listed companies, support value investment, rational investment, and long-term investment, and better maintain the stability of capital markets. Insist on high standards in fulfilling social responsibilities, actively assist in rural revitalization, strengthen industry assistance and consumer assistance, effectively safeguard food and important energy resource security, fully prepare for emergency responses to major natural disasters, and effectively play the role of a "stabilizer" and "ballast".

Accelerate the promotion of high-level technological independence and self-reliance. Practice a new type of national system, strengthen the tackling of key core technologies, actively participate in the construction of a national laboratory system, take the initiative to undertake major national science and technology projects, deeply advance the construction of original technology sources, strive to break through and master more fundamental technologies, and strengthen the supply of common technologies in the industry. Fully play the leading role of enterprises in technological innovation, strengthen the deep integration of industry, academia, and research led by enterprises, implement technological achievement application expansion projects, promote large-scale application demonstrations of new technologies, new products, and new scenarios, strengthen the technical maturation, engineering amplification, and reliability verification functions of pilot testing platforms, increase the procurement of the first sets, first batches, first versions, and break through the "last mile" of achievement transformation and application. Accelerate the establishment of a scientific and effective technology management and operation mechanism centered on research and oriented towards effectiveness, deeply promote specialized talent training projects and talent highland initiatives, and provide various forms of medium- and long-term incentives for researchers, continuously stimulating the creative vitality of enterprise innovation.

Deeply promote layout optimization and structural adjustment. Further clarify the functional positioning of various enterprises, based on in-depth research on industry situations, industrial trends, and market dynamics, leverage the comparative advantages of enterprises, and vigorously promote differentiated layouts. Deeply implement the revitalization action of central enterprises, the launch action of future industries, and the "AI+" special action, accelerate the strong foundation transformation of traditional industries, vigorously layout strategic emerging industries and future industries, and continuously enhance the modernization level of the industrial system. Deeply implement regional coordinated development strategies and major regional strategic initiatives, combine enterprise advantages with regional resource endowments, increase investments in strategic industries, material reserve bases, and infrastructure, and help create a number of world-class industrial clusters, collectively climbing to the high end of the industrial chain and value chain. Guided by the eight high-quality actions for jointly building the Belt and Road Initiative Concept, comprehensively advance major landmark projects and "small but beautiful" livelihood projects, coordinate to consolidate cooperation in traditional fields while steadily expanding cooperation in emerging areas, promote high-level project compliance, and accelerate achieving high-quality "going global."

Continue to deepen the reform of state-owned assets and state-owned enterprises. Adhere to the market-oriented reform direction, further integrate into a high-level socialist market economy, and promote the efficient linkage of reform and development. Further promote the deep implementation of China's modern enterprise system, improve corporate governance systems, accelerate the construction of a scientific, rational, and efficient Board of Directors, deepen the reform of the three systems, and fully stimulate corporate vitality. Accelerate the establishment of a flexible and efficient market-oriented operation mechanism, further compress management levels, establish a rapid decision-making mechanism, explore the implementation of flat management and platform operation models in emerging industries, and continuously improve market response speed and flexibility. Improve the state-owned asset supervision system, deeply advance the assessment of "one industry, one policy; one enterprise, one policy," strengthen policy support for technological and industrial innovation, while promoting the improvement of the supervision system, exploring intelligent and penetrating supervision, achieving an organic unity of "flexibly releasing" and "effectively managing."

Strengthen the coordinated development with various enterprises. Deeply develop the co-chain action for the integrated development of the industry chain, fully leverage the industrial, resource, and talent advantages of large enterprises, and through forming industry alliances, implementing industry co-construction, and conducting business cooperation, enhance market-oriented cooperation with private enterprises and various other businesses, regularly advancing efficient connections in production, supply, and sales, promoting complementary advantages and coordinated development among various enterprises in extending chains, supplementing chains, strengthening chains, and solidifying chains. By forming high-level innovation platforms, upgrading innovation consortia, co-constructing joint laboratories, and open-sharing innovation resources, strengthen cooperation with various enterprises possessing innovative advantages, explore the construction of mechanisms for shared investment, shared interests, and shared risks, and jointly accelerate the joint development and iterative upgrading of new technologies and new products, enhancing innovative strength through open sharing and coordinated promotion. Adhere to the principle of universal service, providing technology-leading, high-quality and efficient infrastructure services for various enterprises, fully ensuring the stable supply of basic energy resources, collaborating on major national projects, taking the lead in addressing overdue accounts, and promoting a fair competitive environment.

Lead and ensure high-quality development with high-quality party building. Strengthen the political construction of the party, unwaveringly use the party's innovative theory to unify thought and forge the soul, earnestly implement the decisions and deployments of the Party Central Committee, and ensure that the commitment to achieve the "two safeguards" is reflected in the practical actions and effectiveness of strengthening, optimizing, and expanding state-owned capital and state-owned enterprises. Further strengthen the party's organizational coverage and work coverage, comprehensively promote party construction in headquarters and grassroots, domestic and overseas, as well as in controlling and participating enterprises, promote the deep integration of party building work with production and operation, and better leverage the role of grassroots party organizations as a bastion and the pioneering and exemplary role of party members and cadres. Establish the correct orientation for personnel selection and use, optimally and strongly assemble enterprise leadership teams, reinforce positive incentives, improve mechanisms for compliance with duties and exempting liability, vigorously promote the spirit of entrepreneurship, and through the courage of enterprise leaders, inspire enterprises to take action and employees to innovate. Deeply promote the comprehensive and strict governance of the party, consolidate and deepen the results of party discipline education, promote the concretization, precision, and normalization of political supervision, continuously advance the investigation and management of corruption, and jointly drive the initiative of not daring to be corrupt, not being able to be corrupt, and not wanting to be corrupt, effectively creating a favorable political ecology for strengthening, optimizing, and expanding state-owned capital and state-owned enterprises.

Editor/Somer