Study Times published Fu Gangfeng''s signed article: Advancing Chinese-Style Modernization in State-Owned Capital Investment Companies Through High-Quality Development

On October 25, 2023,Study Times featured a special topic titled "The Pillars of a Great Nation: Forging a New Journey" and published a signed article by Fu Gangfeng, Chairman of the State Development and Investment Corporation and Secretary of the Party Group. The article is titled Advancing Chinese-Style Modernization in State-Owned Capital Investment Companies Through High-Quality Development.

The article underscored SDIC's commitment to Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era. Recognizing the crucial significance of the "Two Affirmations" and maintaining an unwavering commitment to "Two Upholds", the group prioritizes the primary goal of high-quality development. SDIC fearlessly shoulders the mission and responsibilities associated with state-owned capital investment, continually refining its core competitiveness, enhancing essential functions, and actively contributing to the narrative of SDIC in the context of Chinese modernization.

The article elaborated on three key aspects: accurately discerning the developmental direction of state-owned capital investment companies in the new era and on the new journey, leveraging the functions of state-owned capital investment companies, and propelling high-quality development amid comprehensive and deep reforms. It emphasized SDIC's thorough study and implementation of Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress of the Chinese Communist Party. This involves a complete, accurate, and comprehensive implementation of the new development concepts. SCIC is actively aligning itself with the new development pattern, promoting high-quality development, accelerating the construction of a world-class capital investment company, and taking the initiative to contribute to building China into a great modern socialist country while advancing national rejuvenation.

State Development and Investment Corporation

Fu Gangfeng, Chairman and Party Secretary

The report of the 20th National Congress of the Communist Party of China presented a blueprint to propel the great rejuvenation of the Chinese nation through Chinese-style modernization, specifically emphasizing the promotion of high-quality development. The Party Group of State Development and Investment Corporation (referred to as SDIC) aligns itself with the innovative principles of the Party in the new era. Recognizing the crucial significance of the "Two Affirmations" and maintaining an unwavering commitment to "Two Upholds", the group prioritizes the primary goal of high-quality development. SDIC fearlessly shoulders the mission and responsibilities associated with state-owned capital investment, continually refining its core competitiveness, enhancing essential functions, and actively contributing to the narrative of SDIC in the context of Chinese modernization.

Identifying development directions of state-owned capital investment in the new era and journey

Development is the Party's foremost priority in governing and rejuvenating the country. A robust material and technical foundation is deemed essential for the comprehensive construction of a socialist modernization powerhouse. In its role as a state-owned capital investment company, the SDIC Party Group has delved deeply into the developmental dynamics of such entities. It has steadfastly served as both the "ballast stone" and "pillar," earning an impressive Grade A rating in the performance appraisal by the State-owned Assets Supervision and Administration Commission of the State Council for 19 consecutive years.

SDIC Group has won Grade A rating in the performance appraisal by the State-owned Assets Supervision and Administration Commission of the State Council for 19 consecutive years.

SDIC champions high-quality development through adherence to the new development concept. In this new era and stage of development, adherence to the new development concept is imperative, synonymous with a commitment to high-quality development. SDIC takes the lead in championing high-quality development, fully, accurately, and comprehensively implementing the new development concept. The organization continuously refines its strategic positioning, development direction, and management methods. It earnestly applies the new development concept across all sectors, linking and overseeing the entire process. SDIC comprehensively and systematically embraces the connotations of being stronger, better, and bigger. It focuses on resolving issues of quality, prioritizing quality and efficiency, and accelerating transformations in quality, efficiency, and capability.

SDIC prioritizes strategic optimization to stay ahead as a world-class enterprise. In pursuit of high-quality development and the swift establishment of a world-class enterprise, SDIC recognizes the inherent requirements for maximizing the functions of state-owned enterprises. Viewing its formal transformation into a state-owned capital investment company as a new starting point, SDIC directs all its efforts toward the overall development of the party and the state. This involves strategic thinking, positioning, and layout, with a focus on strategic security, industry leadership, the national economy, people's livelihood, public services, and other vital fields. The company clearly defines its strategic positioning as "serving the national strategy, promoting structural optimization, building a better life, advancing scientific and technological innovation, and leading industrial upgrading." SDIC actively increases investment layout, accelerates the transformation of its development mode, and expedites the construction of world-class capital investment companies.

SDIC seeks to sharpen its core competitiveness through value creation. It believes that promoting the reform of state-owned enterprises should contribute to preserving and increasing the value of state-owned capital, improving the competitiveness of the state-owned economy, and maximizing the functions of state-owned capital. SDIC continually refines its value creation system, bolstering its ability to create value in all aspects. This commitment permeates the entire process of business decision-making, integrating value creation requirements into all facets of management and operation. The orientation toward value creation is embodied in effective incentives and constraints, with a focus on improving efficiency. SDIC consistently drives the optimization of business layout and structural adjustment, adeptly allocating resources in a timely and effective manner based on evolving circumstances. In the pursuit of excellence, SDIC gravitates towards business units with the potential to evolve into first-class enterprises and works to continually enhance its total factor value creation ability.

SDIC gives full play to the role of a state-owned capital investment company.

Aligned with the new era, new journey, new mission, and new orientation of state-owned central enterprises, the SDIC Party Group considers scientific and technological innovation, industrial control, and security support as paramount strategic tasks. The group actively harnesses and maximizes the functional role of state-owned capital investment companies in promoting high-quality development.

China Jinping Underground Laboratory, a collaborative venture established by SDIC Yalong Hydro and Tsinghua University

In the realm of scientific and technological innovation, SDIC is actively exploring effective strategies to contribute to this field. The company works to generate a series of innovative accomplishments characterized by robust industrial influence, independent and controllable technology, and symbolic impact, thus aiding in the realization of high-level scientific and technological self-reliance. Additionally, SDIC is pioneering a new model and approach for utilizing industrial investment funds to support scientific and technological innovation. The accumulated investments have backed 335 specialized and emerging enterprises, including 200 state-level "Little Giant" enterprises. A total of 1,018 investment projects have been supported, and 140 enterprises have been nurtured on the Science and Technology Innovation Board, representing 25% of the total listed companies on the board. This underscores the pivotal role played by industrial investment funds in advancing scientific and technological innovation. The company is proactively constructing an innovation system that deeply integrates production, education, and research. Collaborating with esteemed institutions such as Tsinghua University, SDIC has played a leading role in establishing the China Jinping Underground Laboratory, the world's deepest laboratory at a depth of 2,400 meters within the Jinping Hydropower Station. This collaboration has yielded numerous internationally recognized achievements. Through a partnership with the Songshan Lake Materials Laboratory of the Chinese Academy of Sciences, SDIC is pioneering a novel cooperation model known as "SDIC-Songshan Lake Laboratory." This initiative builds a coordinated development platform, linking science, technology, capital, and industry, fostering an investment ecosystem for the transformation of scientific and technological achievements. Furthermore, SDIC is intensifying efforts to cultivate specialized and emerging enterprises. It strategically plans and allocates resources for these enterprises, empowering them with differentiated resource allocation and specialized management. The goal is to position these enterprises as indispensable contributors within their respective segments of the industrial chain.

Xi'an Xinyao Ceramic Composite Materials Co., Ltd.

In the domain of industrial control, SDIC strategically navigates the dynamics of industrial development. The company proactively plans its layout, augmenting investments and engaging in mergers and acquisitions within key links and modules of the industrial chain. This acceleration is geared towards establishing a comprehensive "source" of original technology and lengthening the "chain" of the modern industrial chain. As for the integrated circuit industry, SDIC funds have been directed towards 87 projects spanning semiconductor production core equipment, semiconductor materials, advanced packaging, wafer manufacturing, chip design, and electronic design automation (EDA). This investment layout covers the entire industrial chain of integrated circuits, facilitating breakthroughs in key links crucial to the national integrated circuit industry. In the realm of new materials, subsidiary companies such as Xi'an Xinyao Ceramic Composite Materials Co., Ltd., have achieved breakthroughs in cutting-edge manufacturing of ceramic matrix composites. This has led to efficient and stable manufacturing of large-scale complex thermal protection components, significantly elevating the technological standard of aircraft thermal protection in China. Another subsidiary, Bolin Advanced Materials Co., Ltd., has addressed technical challenges in the domestic hydraulic parts industry, resolving the dependence on imports for core parts of high-pressure piston pumps in China's aerospace engines and hydraulic sectors, with a rated pressure of 35 MPa. Additionally, Beiing Tongyizhong New Material Technology Corporation, a subsidiary company, has achieved a breakthrough in the complete set of UHMWPE fiber production technology, leading the way in its industrialization in China. In terms of industrial transformation and upgrading, CEEDI, an affiliated enterprise, has actively developed the "Advanced Electronic Manufacturing Digital Twin Factory Solution." This solution enables all-round dynamic analysis and optimization from planning and design to production and operation, resulting in 10% reduction in construction investment, a simultaneous 10% increase in production efficiency, a 10% reduction in the construction cycle, and a 10% decrease in operating costs.

An aerial perspective of the factory grounds at Arab Potash Company

In terms of security support, SDIC is committed to bolstering the supporting capacity of state-owned capital to uphold national security and the industrial foundation, and constructing a robust security barrier aligned with the high-quality development of enterprises. To contribute to national energy security, SDIC has actively advanced the construction of a demonstration base for water, wind, and scenery integration in the Yalong River Basin. This basin stands as the third-largest hydropower base in China, boasting a total installed capacity of 78 million kilowatts. SDIC has successfully developed a series of world-class projects, including seven cascade hydropower stations and three controlled reservoirs. The objective is to establish a groundbreaking model for the large-scale centralized development of renewable energy. In addressing national food security, SDIC has established the world's largest monomer potassium sulfate production base in Lop Nur, commonly known as the "Sea of Death", with an annual output of 1.83 million tons of potassium sulfate. Additionally, SDIC has invested in the Arab Potash Company, facilitating the export of its products to China and effectively bridging the demand gap in China's potash market. This strategic move ensures the sustained and stable development of China's agricultural production. Recognized as one of the lead units in the biological breeding industry designated by the State-owned Assets Supervision and Administration Commission of the State Council, SDIC actively promotes industry consolidation. The company is building a "national team" of agricultural science and technology, focusing on research in provenance key and core technologies. Seven investment enterprises have been selected into the list of national seed industry formation enterprises, achieving a comprehensive coverage of core enterprises, core talents, and core technologies in the biological breeding industry. In the context of serving national network security, SDIC persistently supports national network security efforts and contributes to the modernization of social governance capacity. The company delves into the fields of electronic data forensics and big data, releasing the self-developed "Qiankun" big data intelligent platform and the first domestic public security big model "Tianqing" in 2023. SDIC actively participates in building the national team in the areas of electronic data forensics, public security big data, and cyberspace security.

Advancing High-Quality Development of State-Owned Capital Investment Companies in the Comprehensive Deepening of Reform

Deepening reform stands as a pivotal strategy for effectively managing state-owned enterprises. The SDIC Party Group is unwavering in its commitment to this endeavor, swiftly advancing the establishment of a modern enterprise system. By fully harnessing the enthusiasm, initiative, and creativity of diverse talents, the group solidly propels the high-quality development of its enterprises.

SDIC remains steadfast in its adherence to the guidance of party building. Recognizing the unique advantage of Party leadership in state-owned enterprises, SDIC is committed to upholding the "two consistences" while simultaneously enhancing the modern enterprise system with Chinese characteristics. The company actively constructs a decision-making system characterized by clear rights and responsibilities, ensuring smooth operation. SDIC has also established a corporate governance mechanism with statutory, transparent, and coordinated elements, including effective checks and balances. The unwavering integration of the Party's leadership into all aspects of corporate governance remains a priority. The deep integration of party building with production and operation is a continuous focus, with ongoing efforts to enhance the comprehensive administration of the Party and create a pattern of party building work consistent with development strategies, matched development models, and coordinated management modes. Initiatives like the "Empowering Party Members to Lead the Charge in Promoting Reform and Development" serve as means and starting points for SDIC's commitment to enhancing the political and organizational functions of party organizations. The ultimate goal is to transform the advantages of party building work into tangible corporate governance benefits, competitive advantages, and developmental strengths.

SDIC Group released the practice manual of "Empowering Party Members to Lead the Charge in Promoting Reform and Development" Initiative

SDIC works to enhance systems and mechanisms for market-oriented reform. To align with the reform direction of the socialist market economy and boost the inherent vitality of state-owned enterprises, SDIC prioritizes the acceleration of a flexible and efficient market-oriented operating mechanism. The company is committed to a comprehensive reform of the three systems—labor, personnel, and distribution. In this pursuit, SDIC has significantly refined the tenure system and contractual management for managers. The company has also revamped the market-oriented salary distribution mechanism and introduced a medium-and long-term incentive structure. This has resulted in a harmonious balance between responsibilities and rights, contributions and income, incentive cycles and business cycles. The incentive policies are thoughtfully tailored to favor businesses and roles with challenging responsibilities. SDIC has implemented differentiated management and control, establishing an authorization mechanism of "one enterprise, one policy." Furthermore, the company is actively and steadily advancing the reform of mixed ownership, pioneering the exploration of innovative management mechanisms for state-owned relatively controlled mixed ownership enterprises. This initiative effectively promotes collaborative progress and mutually beneficial cooperation across various enterprises.

SDIC endeavors to build a robust talent team. To propel enterprises towards high-quality development and excel in the intense global competition, SDIC is dedicated to building a more dynamic, open, and effective talent team. The company continually refines and establishes systems and mechanisms for the growth of its cadre, with a strong emphasis on practical experience, grassroots involvement, and performance-driven criteria. SDIC places significant importance on the selection and alignment of leadership at all levels, giving special attention to the training and cultivation of exceptional young cadres. The company consistently enhances the analysis and judgment capabilities of its cadre members, aiming to cultivate a team with outstanding political acumen, robust management skills, a penchant for market-driven efforts, adaptability to the demands of the new era, and the ability to lead in modernization. Active efforts are underway to promote the construction of talent teams in key areas. SDIC is expediting the implementation of vital tasks related to "attracting and gathering talents", while improving the support system for talent teams centered around value creation. The company is committed to fostering an environment that respects the value of talent, encourages innovative thinking, and maximizes the potential of its talented individuals.