context: Despite US blockade, the PRC seeks to expand its international scitech outreach. Subsidy-driven domestic agricultural production failed to overcome import reliance for food security. Byzantine corporate structures pose risks for both SOEs and private enterprises. CCDRC (Central Comprehensively Deepening Reforms Commission) addresses these concerns. Its last meeting on 19 February 2024 focused on land management and grassroots emergency response.
The fifth meeting of CCDRC (Central Comprehensively Deepening Reforms Commission) was held on 11 Jun 2024, reports Xinhua. It approved three documents representing domains of reform on
- corporate governance: 'Opinions on improving the modern enterprise system with Chinese characteristics'
- farmers motivation: 'Guiding opinions on improving the income guarantee mechanism for grain farmers and benefit compensation mechanism for major grain-producing areas'
- scitech openness: 'Several opinions on building a globally competitive scientific and technological Innovation open environment'
Corporate governance reform aims to create world-class companies through party leadership, refined governance, clear property rights, scientific management and separating enterprise and state. It requires enterprise autonomy, problem-oriented approaches and tailored policies. The meeting thus specifies that
- state-owned enterprises should
- implement responsibilities
- improve governance
- enhance supervision of state-owned capital
- private enterprises are encouraged to
- establish modern systems
- improve governance
- regulate shareholder behavior
- strengthen internal supervision
- enhance risk prevention
Agricultural reform aims to stabilise grain production and ensure food security. The meeting highlights the need to improve the income and motivation of grain farmers in major producing areas. Small farmers and new ag operators should be nudged towards modernised agricultural practices. Measures to improve production include
- refining price, subsidy and insurance policies
- innovating grain business models
- establishing inter-provincial incentive systems for major producing areas
The scitech reform seeks to open the PRC to international cooperation and exchanges in innovation. While managing technological risks, an open environment requires a combination of
- participating in global technology governance
- resolving practical concerns of international researchers to ensure they are attracted, retained and utilised
Xi Jinping 习近平 chaired the meeting, which was also attended by Li Qiang 李强, Wang Huning 王沪宁 and Cai Qi 蔡奇 who are all CCDRC deputy directors.