China releases guideline to improve modern corporate systems with Chinese features
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
In an ongoing push to make Chinese enterprises “more dynamic, resilient and competitive,” Chinese authorities on Monday made public a guideline on refining the country’s modern corporate system with distinctive Chinese features.
The guideline, released by the general offices of the Communist Party of China Central Committee and the State Council, proposed 19 specific measures that focus on reinforcing the Party’s leadership, optimizing corporate governance structure and scientific management, and improving incentive mechanisms for innovation.
The document seeks to empower enterprise development with institutional innovation, further unleashing the vitality of micro entities and making China’s modern enterprises more dynamic, resilient and competitive, according to a Q&A on the website of the National Development and Reform Commission, the country’s top economic planner.
China expects to establish a modern corporate system with distinctive Chinese features in eligible enterprises in about five years so that they can fully play their roles in promoting innovation, supporting industrial upgrade and fulfilling their social responsibilities, the guideline said.
By 2035, China shall see more refined modern corporate systems with distinctive Chinese features, which would significantly boost the global competitiveness of Chinese enterprises and lay a solid foundation for building world-class companies.
The document devoted a special chapter to enhancing incentive mechanisms for innovation within enterprises, outlining specific measures to innovate organizational structures, optimize resource allocation efficiency, and refine the design of incentive systems.
It also called for efforts to leverage the role of capital markets in enhancing corporate governance. Listed companies are encouraged to bring in institutional investors holding over 5 percent stakes as active shareholders. Moreover, the information disclosure system in the governance of listed companies shall be improved to promote sound decision-making.
Reference Link:- https://english.news.cn/20250526/726718d9cc2f46bba6acac7e01f2c340/c.html
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
