SOEs to focus on core sectors, real economy

Central State-owned enterprises will focus on core sectors and the real economy in the upcoming 15th Five-Year Plan (2026-30) period to move up the value chain and lead the push for a modern industrial system, said Zhang Yuzhuo, chairman of the State-owned Assets Supervision and Administration Commission of the State Council.

SOEs are a key part of China's national science and technology force, Zhang said. In recent years, they have put innovation first and leveraged system-wide coordination. Their R&D spending has topped 1 trillion yuan ($140 billion) for three straight years.

"Breakthroughs were made in machine tools, industrial software and basic materials, and flagship projects such as the Chang'e-6 lunar mission and the Fendouzhe (Striver) deep-sea submersible were developed," he said in an interview with Xinhua News Agency.

Since the start of the 14th Five-Year Plan (2021-25), SOEs' R&D spending rose an average of 6.5 percent a year. Annual investment exceeded 1 trillion yuan for three consecutive years and reached 1.1 trillion yuan in 2024. Basic research accounted for 8.8 percent of the total.

Looking to the 15th Five-Year Plan, China will target major technology challenges that affect national security and long-term interests, Zhang said, adding that the focus is on original and homegrown innovation to support technological self-reliance and the goal of building a strong science and technology nation.

A new wave of digital transformation is planned for SOEs.

"AI+" initiatives will be expanded, with AI, big data, cloud computing, 5G and the Internet of Things integrated across traditional industries. Technical upgrades and large-scale equipment renewals will continue. SOEs will take the lead in carbon peaking plans for key sectors, alongside efficient resource recycling and faster product iteration, while strengthening the supply of high-end products. The aim is smarter, greener and more integrated growth, Zhang said.

In recent years, SOEs have upgraded traditional industries while fostering new sectors. During the 14th Five-Year Plan period, investment in emerging industries grew more than 20 percent on average each year. World-class clusters have taken shape in next-generation information technology, new energy, new materials and high-end equipment manufacturing, helping key industries climb the value ladder.

China will keep developing key sectors such as new energy, new-energy vehicles, new materials, aerospace and the low-altitude economy. It will also move early on frontier tracks including quantum technology, embodied intelligence, bio-manufacturing, green vessels and 6G, to drive a sustained shift in corporate growth engines, Zhang said.

Zhang pledged that SASAC will make full use of SOE funds for strategic emerging industries and venture capital vehicles. It will study building a full-chain industry financing system covering seed, angel, growth and fund-of-funds stages.

It will improve scientific, professional and efficient investment decision-making and build high-standard State capital operation platforms to support the creation of a modern industrial system, Zhang said.

"World-class enterprises are a key marker of a nation's economic strength, technological prowess and international competitiveness," Zhang said. "Building a modern socialist country in all respects requires a group of world-class firms."

China will also improve resource allocation and integration among SOEs, innovate production models and industry organization, and deepen global engagement. High-quality cooperation under the framework of the Belt and Road Initiative will be a focus as China seeks broader and deeper access to global markets, Zhang added.

renqi@chinadaily.com.cn