China-Singapore Jingwei, December 21 **Ji Xiaonan, former chairman of the board of supervisors of key large state-owned enterprises, said on the 21st that improving the internal and external governance system is a fundamental measure for the sustainable and healthy development of private enterprises.
On December 21, the 2023 China Corporate Governance 50 Forum and the 12th Finance China V Forum were held in Beijing. The forum was guided by the China Association of Listed Companies and China News Service, hosted by the China Corporate Governance 50 Forum, China-Singapore Jingwei, and the Academic Advisory Committee of the China Association of Listed Companies, and co-sponsored by the CITIC Reform and Development Research Association and the School of Economics and Business Administration of Beijing Normal University.
At the forum, Ji Xiaonan pointed out that strengthening the construction of the internal and external governance system of private enterprises is of great significance and role to the development of private enterprises themselves and the high-quality development of China's economy.
**Ji Xiaonan, former chairman of the board of supervisors of key large state-owned enterprises.
Ji Xiaonan believes that improving the internal and external governance system is a fundamental measure for the sustainable and healthy development of private enterprises. "China is recognized as a great civilization in the world that has lasted for thousands of years without interruption, but the number of Chinese enterprises with hundreds of years of history is very small, this historical phenomenon is worth pondering. The sustainable development of enterprises cannot rely on individual entrepreneurs, and the key to the long-term development of enterprises is to rely on institutional guarantees, including corporate governance and modern enterprise systemsThe second is to rely on cultural inheritance. ”
The lag of the governance system is the institutional reason that restricts the sustainable and healthy development of some private enterprises", Ji Xiaonan said, since the 18th National Congress of the Communist Party of China, the international and domestic situation and the external environment for enterprise development have undergone tremendous changes, and some large or even extra-large Chinese private enterprises have encountered serious difficulties or are waiting for liquidation. This requires us to attach great importance to and effectively strengthen the construction of internal and external governance systems for the sustainable and healthy development of private enterprises.
When talking about the factors affecting the governance system of the sustainable development of private enterprises, Ji Xiaonan analyzed:
1. Theoretical understanding bias. The Third Plenary Session of the 18th Central Committee of the Communist Party of China emphasized that the market plays a decisive role in the allocation of resources, and some institutions and scholars may have errors in their understanding of this, specifically in the relationship with private enterprises, they believe that the property rights of private enterprises belong to entrepreneurs, and the operation and management of private enterprises should not be interfered with.
2. Ideological deviations. From a practical point of view, there is a tendency of "three emphasis and three neglect", that is, attaching importance to the formulation of encouraging and supporting policies for private enterprises, and ignoring the construction of guiding the governance system of private enterprises;Attach importance to the establishment of a modern enterprise system for private enterprises, especially qualified private enterprises, and ignore the construction of an external governance system for the development of private enterprisesPay attention to the aftermath of serious problems in private enterprises, and ignore the construction of a precautionary system for the sustainable development of private enterprises.
3. Deviations in the governance system. Judging from many private enterprises that have serious business difficulties in recent years, the endogenous power of business development is full, but the "brake mechanism" to prevent and resolve business risks is not effective, and once the external environment of enterprise operation has undergone major changes, many private enterprises are easy to fall into difficulties. It can be said that large and medium-sized private enterprises that have major problems in production and operation basically have the problem of imperfect governance structure.
Fourth, the deviation of institutional arrangements. From the perspective of the national governance system, the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China adopted the "Decision on Several Major Issues Concerning Adhering to and Improving the Socialist System with Chinese Characteristics and Promoting the Modernization of the National Governance System and Governance Capacity", which specifically discussed the improvement of the modern enterprise system of state-owned enterprises and the state-owned assets supervision system, but did not discuss much about improving the internal and external governance system to promote the healthy development of private enterprises. In July this year, the Communist Party of China issued the "Opinions on Promoting the Development and Growth of the Private Economy", which clearly stated that to guide private enterprises to improve the governance structure and management system, it should be said that this issue has been put on the agenda.
Ji Xiaonan finally said that improving the construction of the internal and external governance system for the sustainable development of private enterprises and promoting the high-quality development of private enterprises is a long-term and complex social system project, which requires continuous efforts in many aspects. At least positive and obvious results should be achieved in three aspects: first, it is necessary to establish correct concepts and guiding ideologies, second, it is necessary to make it clear that all kinds of enterprises must improve the governance structure, and third, it is necessary to give full play to the external governance role of private enterprises in sustainable and healthy development. (Zhongxin Jingwei app).
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