Promoting the Common Development of Economic Entities Under All Forms of Ownership

Both the public and private sectors are vital components of the socialist market economy and the bedrock of China's economic and social development. It is therefore imperative to promote the common development of economic entities under all forms of ownership and further simulate the vitality of enterprises.

The Resolution of the Central Committee of the Communist Party of China on Further Deepening Reform Comprehensively to Advance Chinese Modernization (hereinafter "the Resolution") was adopted at the third plenary session of the 20th CPC Central Committee.

To uphold and fulfill the commitments to the public and non-public sectors, the Resolution focuses on deepening reform of state capital and state-owned enterprises (SOEs) to enhance their core functions and on helping to foster a favorable environment and creating more opportunities for the development of the non-public sector. We envision that state and non-public entities will both complement each other and develop side by side.

To deepen reform of state capital and SOEs, we will enhance and refine the top-level design for management in the state-owned sector.

The sector's layout and structure will be improved to steer state capital toward major industries and key fields that are vital to national security and serve as the lifeblood of the national economy. While promoting independent operation of natural monopoly businesses in key sectors, we will advance market-oriented reforms in the competitive areas of these sectors.

We will keep working to help state capital and SOEs become stronger, better, and bigger, so as to steadily enhance the material and political underpinnings of Chinese socialism.

We will continue to implement principles and policies that help foster a favorable environment and create more opportunities for the development of the non-public sector. We will ensure that economic entities under non-public and all other forms of ownership have equal access to factors of production in accordance with the law, compete in the market on an equal footing, and are protected by the law as equals. To this end, we will keep improving the legal, policy, and market environment for the development of the non-public sector.

We will push ahead with legislation for the non-public sector and put in place long-term mechanisms to address prominent issues affecting non-public entities, such as market access, financing, and late payments. With concrete and practical steps, we will see that the pressing difficulties and problems that concern economic entities most are resolved.

We will improve the modern Chinese corporate system with a view to giving full play to the strengths of the system of Chinese socialism. We will ensure that all types of enterprises operate under a sound modern corporate system that features well-defined property rights, clear duties and responsibilities, and the separation of government administration from enterprise management and bring corporate governance under effective regulation. We will vigorously promote entrepreneurship and strive to foster a greater number of world-class enterprises.

Editor: Zhang Xian