Guiding Opinion of the CPC Central Committee and the State Council Concerning Deepening the Reform of State-owned Enterprises

A programmatic document issued by the CPC Central Committee and the State Council on August 24, 2015, to guide and promote the reform of state-owned enterprises. Included in the Selection and Compilation of Important Documents since the 18th National Congress (Vol. 2). The objectives and initiatives of state-owned enterprise reform are proposed from the general requirements to customized reform, improvement of modern enterprise system and state capital management system, development of mixed ownership economy, and strengthening supervision to prevent the loss of state-owned assets.

The "Opinions" pointed out that state-owned enterprises are owned by all the people, is an important force to promote the modernization of the country, to protect the common interests of the people, is an important material and political basis for the development of our Party and the state. In the process of promoting China's economy to maintain high-speed growth and move to the middle and high-end level, improving and developing the socialist system with Chinese characteristics, and realizing the Chinese Dream of the great rejuvenation of the Chinese nation, state-owned enterprises bear a major historical mission and responsibility.

The "Opinions" pointed out that the guiding ideology of the state-owned enterprise reform is to hold high the great banner of socialism with Chinese characteristics, conscientiously enforce the requirements laid down at the 18th National Congress of the CPC and the Third and the Fourth Plenary Sessions of the 18th Central Committee of the CPC, study and enforce the series of important speeches given by General Secretary Xi Jinping in an in-depth manner, stick to and improve the basic economic system, adhere to the direction of socialist market economic reform, raise the efficiency of state-owned capital, improve the vitality of state-owned enterprises as the center, strengthen and improve the Party's leadership over the state-owned enterprises, make state-owned enterprises stronger, better and bigger, and constantly enhance the vitality, controlling power, influence and the ability to withstand risks of the state-owned economic sector. The main objective of the state-owned enterprise reform by 2020 is to basically complete the reform of the corporate system of state-owned enterprises, make the supervision system of state-owned assets more mature, significantly improve the allocation efficiency of state-owned assets, and strengthen the Party building in enterprises in all respects.

We should promote the customized reform of state-owned enterprises and divide them into different categories of state-owned enterprises. We should promote the reform of commercial state-owned enterprises to enhance the vitality of the state-owned economic sector, amplify the functions of state-owned capital, and achieve the value preservation and appreciation of state-owned assets as the main objective, promote the reform of state-owned enterprises in public welfare to protect people's livelihood, serve the society at large, and provide public goods and services as the main objective.

The "Opinions" pointed out that we should improve the modern enterprise system, promote the reform of the corporate-style shareholding system, perfect the corporate governance structure, establish a classified and stratified management system for the leadership of state-owned enterprises, adhere to the principle that the Party manages the cadres, implement an enterprise salary distribution system that is compatible with the socialist market economy, and deepen the reform of the internal employment system of enterprises.

The "Opinions" pointed out that to improve the management system of state-owned assets, we should give priority to managing and promote the transformation of the functions of state-owned asset regulators, reform the system of authorized operation of state-owned capital, promote the rational flow of state-owned capital to optimize the allocation, and promote the centralized and unified supervision of operational state-owned assets.

The "Opinions" pointed out that we should develop the mixed ownership economy, promote the mixed ownership reform of state-owned enterprises, introduce non-state-owned capital to participate in the reform of state-owned enterprises, encourage state-owned capital to buy shares of non-state-owned enterprises in various ways, and explore the implementation of employee stock ownership in mixed ownership enterprises.

We should strengthen supervision to prevent the loss of state-owned assets, strengthen internal supervision of enterprises, establish and improve an efficient and coordinated external supervision mechanism, implement information disclosure, strengthen social supervision, and strictly investigate responsibilities.

We should strengthen and improve leadership over state-owned enterprises, give full play to the political core role of Party organizations in state-owned enterprises, further strengthen the construction of leadership groups and talent teams in state-owned enterprises, and earnestly implement the state-owned enterprises’ "Two Responsibilities" of combating corruption and advocating integrity.

We should create favorable environmental conditions for the reform of state-owned enterprises, improve relevant laws, regulations and supporting policies, speed up the divestiture of enterprises' social functions and solve problems left over by history, form an atmosphere that encourages reform and innovation, and strengthen the organizational leadership of the reform of state-owned enterprises.