new SOE reform plan in pipeline

context: The SOE three-year action plan concluded with SASAC (State-owned Assets Supervision and Administration Commission) in December 2022 suggesting the next focus will be on enhancing 'world-class enterprises'. But the SOEs' responsibilities to act in the interest of the state also include stabilising the struggling economy. The hope is that restructuring the SOEs will achieve both aims.&&&  Following the SOE three-year action plan that finished in 2022, another plan to further optimise the layout of SOEs and their assets, in order to enhance their core competitiveness and functions, is in the pipeline, says Peng Huagang 彭华岗 SASAC secretary-general. In 2023, more than ten central state-owned enterprises (CSOEs) will strive to be recognised by their industry as 'world class' and more than 100 SOEs at different levels will demonstrate better management, branding, value creation and innovative capabilities, Peng asserts.
 In terms of optimising the SOE structure, Peng says the focus in the next period will be on
  • progress
    • strengthening the coordination and cooperation of state-owned capital
    • consolidating, supplementing, strengthening and shaping value chains
  • retreat
    • withdrawing from low-efficiency assets and businesses that are not an SOE's core focus and are not advantageous
    • integrating industries with excess capacity
  • reorganisation
    • integrating resources to avoid repeated investment and homogeneous competition, in areas such as
      • inspections and testing
      • medical health
      • equipment manufacturing
      • mineral resources
      • coal power
  • consolidation
    • integrating CSOEs' internal resources in a market-oriented and law-based manner to form stronger joint forces
The Central Economic Work Conference proposed that efforts should be made to expand domestic demand, effectively drive social investment through government investment and policy incentives, accelerate the implementation of major projects, and strengthen inter-regional infrastructural connectivity, says Peng. To this end, SOEs will focus on
  • the 102 major projects in the national 14th Five-Year Plan and the 1400 special investment projects determined by the 14th 5-Year Plan for SOEs
  • infrastructure development in areas such as
    • cloud computing
    • broadband infrastructure network
    • 5G/6G
    • the national integrated big data centre system
    • satellites
    • water conservancy
    • energy bases
    • logistics
    • rural areas
  • strengthening industrial chains, in areas such as
    • high-end equipment
    • new-generation information technology
    • new materials and other fields
    • strategic emerging industries
The CSOEs are stabilising growth and investment, stressed Peng, noting double-digit growth in new energy vehicles and communication electronics manufacturing, and increasing investments in major national projects, infrastructure and industrial chains in 2022. Peng highlighted a number of special projects, including
  • PipeChina's fourth West-East Gas Transmission Line Project
  • CGN's Lufeng Nuclear Power Project
  • CNOOC's Yancheng Green Energy Port Project
  • State Grid's Baihetan-Jiangsu UHV Project