By Zhang Wenkui, Enterprise Research Institute, DRC

Research Report, No.256, 2020 (Total 6000) 2020-10-28

Abstract: Since the launch of reform and opening-up drive, the ground for policy making for the development of domestic enterprises has shifted from ownership-based formulation to the one encouraging the competition among enterprises of various ownerships on an equal basis. At the new development stage, we need to give more prominence to the policy relating to enterprises’ development. It is noted at the 4th Plenary Session of the 19th CPC Central Committee that a market environment needs to be cultivated to enable entities of different ownerships to enjoy equal access to the utilization of resources and factors according to law in a bid to enable them to participate in market competitions on an open, fair and just footing and accord them equal protection by law. Besides, the meeting also points out that state-owned economic layout and state-owned enterprises’ structures need to be adjusted; some sectors, enterprises and market performance that are not in line with the above-mentioned policies need to be removed in a regulated manner so as to stimulate the enthusiasm of market entities in their business start-ups and innovation and boost business efficiency. The formulation of these fundamental policies for the development of domestic enterprises will be conducive to the sustainable and sound economic growth, and favorable for China to proactively take part in the formulation of regulations in global consultations and governance and gain a bigger say in international arena.

Keywords: enterprises, competition, fairness