Innovation Momentum Drives High-Quality Progress in China’s Central Enterprises
Beijing,January 17,2025 – China’s central enterprises have taken significant strides toward high-quality development,marked by robust innovation momentum,optimized structures,and deepened reforms. At a series of press conferences on the “Achievements of High-Quality Development of China’s Economy,” held by the State Council Information Office, officials highlighted the remarkable progress made by these state-owned giants.
A Year of Record-Breaking Investments
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In 2024, central enterprises invested a staggering 1.1 trillion yuan in research and development (R&D), surpassing the trillion-yuan mark for the third consecutive year. Strategic emerging industries accounted for 2.7 trillion yuan of total investment, representing over 40% of the overall spending. This focus on innovation has also driven a 3% year-on-year increase in overall labor productivity, underscoring the efficiency gains achieved through technological advancements.
Technological Innovation Takes Center Stage
Central enterprises are the backbone of China’s national innovation chain,playing a pivotal role in building a technologically powerful nation. In 2024, groundbreaking achievements such as the Chang’e-6 mission, which brought back the world’s first lunar back sample, and the unveiling of the 400 km/h CR450 EMU prototype showcased the sector’s growing innovation capabilities.
Yuan Ye, deputy director of the State-owned Assets Supervision and Administration Commission (SASAC), emphasized the importance of technological innovation. “To focus on innovation is to focus on development, and to pursue innovation is to seek for the future,” he stated. In 2024, central enterprises formed 24 innovation consortiums, focusing on original technology sources and key core technology research.
SASAC has also introduced a “combination” of measures to foster an innovation-amiable environment. These include increasing the weight of scientific and technological innovation in assessment systems, establishing a list of outstanding scientific and technological innovation enterprises, and strengthening state-owned capital support.
Optimizing Layout for Future Growth
The year 2024 also saw significant restructuring and integration efforts among central enterprises. Newly established entities like China Resources Circulation Group Co., ltd. and China Digital Logistics Information Co., Ltd. have emerged, while key projects in artificial intelligence, quantum information, and other cutting-edge fields have been intensively promoted.
Lin Qingmiao, director of SASAC’s Enterprise Reform bureau, outlined the future direction of these efforts. “We will focus on the reorganization and integration of central enterprises to further promote the optimization and structural adjustment of the state-owned economic layout,” he said. Key strategies include establishing new companies, promoting professional integration, and maximizing synergy effects to release reform dividends.
Key Achievements of Central Enterprises in 2024
| Metric | 2024 Achievement |
|———————————|———————————————–|
| R&D Investment | 1.1 trillion yuan |
| Strategic emerging Industries | 2.7 trillion yuan (40% of total investment) |
| Labor Productivity Growth | 3% year-on-year increase |
| Innovation Consortiums | 24 established |
Looking Ahead to 2025
In 2025,central enterprises will focus on enhancing their role in the national innovation system,addressing weak links in scientific and technological innovation,and improving independent innovation capabilities. Key tasks include increasing the supply of high-quality science and technology, promoting the transformation of high-efficiency results, and building a high-level innovation ecosystem.
As China’s central enterprises continue to innovate and optimize, they are setting a strong foundation for sustained economic growth and technological leadership on the global stage.
State-Owned Enterprises Drive Strategic Emerging Industries and Deepen Reforms
China’s state-owned enterprises (soes) are making significant strides in advancing strategic emerging industries while simultaneously deepening reforms to enhance their efficiency and competitiveness. In 2024, central enterprises invested a staggering 2.7 trillion yuan in strategic emerging industries, marking a 21.8% year-on-year increase. This investment has propelled the proportion of strategic emerging industry revenue in total revenue by 4.2 percentage points, signaling a transformative shift in the industrial landscape.
Industrial Rejuvenation and Future Industries Take Center Stage
The State-owned Assets Supervision and Administration Commission (SASAC) has been instrumental in driving the industrial rejuvenation of central enterprises and launching future industries. According to Dai Xi, Director of the Planning and Development Bureau at SASAC, these efforts have accelerated the development of strategic emerging industries, reshaping development concepts, growth momentum, and industrial patterns.
In 2024, central enterprises also invested over 800 billion yuan in updating and digitizing old equipment, green transformation projects, and building 120 smart factories. These initiatives underscore the commitment to modernizing customary industries while fostering innovation in emerging sectors.
Key Achievements in 2024
| Metric | 2024 Performance |
|————————————-|————————————|
| Investment in Strategic Industries | 2.7 trillion yuan (+21.8% YoY) |
| Revenue from Strategic Industries | Increased by 4.2 percentage points |
| Investment in Green Transformation | Exceeded 800 billion yuan |
| Smart Factories Built | 120 |
optimizing the State-Owned Economic Layout
Looking ahead, Yuan Ye emphasized the importance of implementing the goals of the 14th Five-Year Plan and preparing for the 15th Five-Year Plan. The focus will remain on main responsibilities and main businesses,with intensified efforts to promote strategic restructuring and professional integration.
“We will focus on the industrial rejuvenation actions of central enterprises and the launch of future industries, promote the smooth transition of new and old driving forces, and better play their vital role in the development of new quality productivity,” yuan Ye stated.
Deepening SOE Reforms for Greater Efficiency
The reform of state-owned enterprises has entered a critical phase, with over 70% of the main tasks completed since the implementation of the action to deepen and improve SOE reforms. Lin Qingmiao, a key figure in the reform process, highlighted the progress made: “We have made every effort to implement various reform tasks, further enrich the content of the reform, increase the intensity of the reform, and improve the effectiveness of the reform.”
Key Reform Achievements
- 98% of central enterprises and subsidiaries of local SOEs have established a term system for management members and a contractual management system.
- the proportion of central enterprise managers being adjusted or deemed incompetent to quit exceeds 6%.
- SASAC has introduced targeted assessment implementation plans for 25 industries, with 77% of assessment indicators personalized in 2024.
These reforms have not only enhanced the overall functions of the state-owned economy but also improved the supervision efficiency of state-owned assets.
The Road Ahead: Tackling challenges in 2025
As 2025 marks the final year of the action to deepen and improve SOE reforms, the focus will be on strengthening scientific and technological innovation, optimizing the state-owned economic layout, and improving the modern enterprise system with Chinese characteristics.
“we will follow the central government’s deployment requirements, compare tasks, consolidate responsibilities, focus on key points, and go all out to tackle tough problems,” Lin Qingmiao affirmed.
Conclusion
China’s state-owned enterprises are at the forefront of driving innovation and economic transformation. With significant investments in strategic emerging industries,a commitment to green transformation,and ongoing reforms to enhance efficiency,SOEs are poised to play a pivotal role in shaping the nation’s future.
for more insights into China’s economic strategies, explore our detailed analysis on China’s Five-Year Plans and the Role of SOEs in economic Development.
What are your thoughts on the future of state-owned enterprises in China? Share your views in the comments below!
State-Owned Enterprises Drive strategic Emerging Industries and Deepen Reforms
China’s state-owned enterprises (SOEs) are making notable strides in advancing strategic emerging industries while concurrently deepening reforms to enhance their efficiency and competitiveness.In 2024, central enterprises invested a staggering 2.7 trillion yuan in strategic emerging industries, marking a 21.8% year-on-year increase. This investment has propelled the proportion of strategic emerging industry revenue in total revenue by 4.2 percentage points, signaling a transformative shift in the industrial landscape.
Industrial Rejuvenation and Future Industries Take Center Stage
The State-owned Assets Supervision and Administration Commission (SASAC) has been instrumental in driving the industrial rejuvenation of central enterprises and launching future industries. According to Dai Xi,Director of the Planning and Development Bureau at SASAC,these efforts have accelerated the development of strategic emerging industries,reshaping development concepts,growth momentum,and industrial patterns.
In 2024, central enterprises also invested over 800 billion yuan in updating and digitizing old equipment, green transformation projects, and building 120 smart factories. These initiatives underscore the commitment to modernizing conventional industries while fostering innovation in emerging sectors.
Key Achievements in 2024
| Metric | 2024 Performance |
|————————————-|————————————|
| Investment in Strategic Industries | 2.7 trillion yuan (+21.8% YoY) |
| revenue from Strategic Industries | Increased by 4.2 percentage points |
| Investment in Green transformation | Exceeded 800 billion yuan |
| Smart Factories built | 120 |
Optimizing the State-Owned Economic Layout
Looking ahead, Yuan Ye emphasized the importance of implementing the goals of the 14th Five-Year Plan and preparing for the 15th Five-Year Plan. Central enterprises will continue to focus on optimizing their industrial layout, enhancing innovation capabilities, and deepening reforms to ensure sustained growth and global competitiveness.
Focus on Innovation and Efficiency
The emphasis on technological innovation remains a cornerstone of China’s SOE strategy.In 2024, central enterprises established 24 innovation consortiums to focus on original technology sources and key core technology research. This focus has already yielded significant results,including groundbreaking achievements like the Chang’e-6 lunar mission and the CR450 EMU prototype.
Green and Digital Transformation
central enterprises have also made ample investments in green and digital transformation. Over 800 billion yuan was allocated to update old equipment and build 120 smart factories, reflecting a commitment to sustainable and efficient production methods.
Conclusion
As China’s central enterprises continue to innovate and optimize, they are setting a strong foundation for sustained economic growth and technological leadership on the global stage. The year 2025 promises further advancements in strategic emerging industries, deeper reforms, and enhanced innovation capabilities, ensuring that these state-owned giants remain at the forefront of national and global progress.
