The sessions of NPC and CPPCC, China's top legislature and political advisory body, opened in late May. Member of the Standing Committee of the CPPCC and ChemChina Chairman Ning Gaoning proposed advice on multiple topics. 

Key to the reform of SOEs

The key to the reform of SOEs is to create a positive mechanism to encourage innovation and creation. Weak innovation ability has become a key factor restricting the development of SOEs. The development model oriented by scale expansion will inevitably lead to weak core competitiveness and low level of return. The reform of SOEs cannot be generalized to improve efficiency and release vitality. Instead, the key is to create a positive mechanism to encourage innovation and creativity. 

Nature of  SOEs

The SOEs are enterprises first. The reform of SOEs must also comply with the nature and mission of enterprises and the internal law of enterprise development. A good SOE should bring incremental value contribution to society, customers, employees and shareholders through innovation and creation. The significance and value of the SOEs are reflected in the circulation process of the four elements. 

Supply chain important

The country should control the most important part of the supply chain. Enterprises should appropriately narrow the scope of supply chain without reducing efficiency. They can establish supply chain in China or regional supply chain to make it more efficient and controllable. 

Be more digital and intelligent in the future

We pay more and more attention to the application of digitalization and intelligence in communication, logistics and manufacturing. This is a test. Enterprises must be stronger when they come out of it. China has taken a step forward in this regard. Its role may be gradually played in the future.  

Get through by innovation and R&D

For those enterprises that survive the pandemic but have been hit to some extent, they should continue to improve their capability, adjust their strategic models, and appropriately modify the market positioning. Of course, the most important thing is just like before the epidemic, to truly innovate, really research and develop, and enhance their own strength, so as to get through this stage. 

Further increase the stimulus to economic development

We will further increase the stimulus to economic development, promote the transfer of fiscal deficits and additional treasury bonds to the real economy, guide banks to cut interest rates on personal credit and reduce standards, and expand domestic demand. 

Accelerate the reform of SOEs

Accelerate the reform of SOEs, achieve real reform, hard assessment and real bankruptcy, continuously improve the return on assets through the optimal allocation of state-owned assets, and guide SOEs to focus on the main business, become stronger and bigger.

 Strengthen the punishment of counterfeiting

Due to the low cost of crime and the flexibility of operation, many Chinese enterprises modify the information data and audit and evaluation companies also participate in fraud, which seriously affects the quality and reputation of Chinese enterprises. It is suggested that we should strengthen the punishment of the counterfeiting industry chain and cultivate a credible intermediary.