Xing Huina:

Now the floor is open to questions. Please identify your media outlet before raising questions.

Xinhua News Agency:

The third plenary session of the 20th CPC Central Committee made strategic arrangements to further deepen reform comprehensively and to advance Chinese modernization. The resolution that was adopted at the session put forward a series of new requirements focusing on deepening reform of state capital and SOEs. What measures will the SASAC take to implement these strategic arrangements? Thank you.

Wang Hongzhi:

Thank you for your question. As I mentioned just now, the third plenary session made systematic plans to deepen the reform of state capital and SOEs, providing both directional guidance and practical requirements as well as serving as a program of action for our work on state capital and SOEs on the new journey. This week, the SASAC held seminars for heads of central government-owned enterprises and heads of SASAC local offices to study and implement the guiding principles from the session. We initially consider focusing on five aspects:

First, we will remain committed to helping state capital and SOEs get stronger, do better and grow bigger. This is the leading goal in deepening reform of state capital and SOEs. We will continue to accelerate the removal of systematical institutional barriers that impede development through reform, so as to appropriately expand and effectively upgrade the economic output of enterprises, increasing their control and influence capacity in key industries and areas as well as providing strong support for stable and healthy economic and social development.

Second, we will accelerate the formation of new relations of production that are more compatible with new quality productive forces. This is a distinct direction of deepening reform for state capital and SOEs, as well as a defining fact of our time. We will seize the opportunities of a new round of scientific and technological revolution and industrial transformation as well as accelerate the improvement of systems and mechanisms conducive to original innovation, the development of strategic emerging industries and the stimulation of talent vitality. We will also promote the spirit of outstanding entrepreneurs and scientists, advance reforms in organizational structures, operating mechanisms and management systems, and channel various types of advanced production factors toward the development of new quality productive forces.

Third, we will enhance core functions and improve core competitiveness. This is the fundamental requirement for deepening reform of state capital and SOEs. We will focus on the country's needs and most fundamental interests, continuously increasing the functional value of SOEs to forge their unique competitive advantages, and promote enterprises to better fulfill their economic, political and social responsibilities.

Fourth, we will fully deliver on the key reform tasks defined by the plenary session. At the level of the state-owned sector of the economy, our main focus is on refining the layout of the state-owned sector and adjusting its structure as well as steering state capital toward major industries and key fields that are vital to national security and serve as the lifeblood of the national economy, toward sectors such as public services, emergency response, and public welfare, which concern our country's prosperity and our people's wellbeing, and toward forward-looking and strategic emerging industries. At the state-owned enterprises (SOEs) level, the emphasis is on refining the modern corporate system with distinctive Chinese features and building more world-class enterprises. At the state capital supervision level, our focus is on improving the institutions and mechanisms for management and oversight, strengthening strategic coordination and improving regulatory effectiveness. We will also encourage enterprises to boldly innovate and pioneer, implement differentiated and tailored reform measures according to actual conditions, and to fully stimulate enterprise vitality.

Fifth, it is especially important to uphold and strengthen the Party's overall leadership. The fundamental guarantee for successfully completing the reform tasks laid out in the third plenary session is the leadership and capacity building of the Party. We will implement the guiding principles from the national meeting on building the role of the Party within SOEs, ensure that Party leadership is exercised in every aspect and throughout the entire process of reform, leverage the important role of the Party committees (the leading Party members groups) of state-owned enterprises in the governance system, promote the deep integration of Party building with production and operations, and ensure that the reform always moves in the right direction and achieves the anticipated results.

To conclude, in the current and upcoming period, the sector of state capital and central SOEs will treat the study and implementation of the guiding principles of the third plenary session of the 20th CPC Central Committee as a major political task. We will comprehensively study, fully grasp and thoroughly implement these guiding principles, while transforming the strategic tasks arranged by the CPC Central Committee into specific actions and measures. We will forge ahead with even greater vigor to improve and strengthen our work related to state capital and central SOEs, thereby adding new momentum to the advancement of Chinese modernization. Thank you!