China's SOEs to drive original innovation, state-assets regulator chief says

China's State-owned Assets Supervision and Administration Commission (SASAC) is intensifying efforts to position state-owned enterprises (SOEs) at the forefront of the nation's technological innovation push.

Zhang Yuzhuo, chairman of the commission, emphasized the crucial role that centrally administered SOEs play in China's strategic science and technology endeavors, noting that they are vital components in the country's drive to become a technological powerhouse.

The country's top state-assets regulator will firmly implement the initiatives laid out at the third plenary session of the 20th Communist Party of China Central Committee, and will strengthen the role of enterprises as primary players in innovation, Zhang said in an interview with Xinhua.

A significant part of this strategy involves achieving breakthroughs in original innovation through enhanced systems and mechanisms that support research and development (R&D).

To that end, SOEs are set to deepen their integration into the national innovation system, with many expected to lead or actively participate in major national sci-tech projects.

Zhang highlighted a new enterprise R&D reserve fund system designed to support targeted research in areas with high strategic value and strong application potential. The initiative aims to secure critical core technologies and advance foundational research, both of which are essential for broader technological progress.

Additionally, he outlined plans for SOEs to play a leading role in the construction of national laboratories, and in the establishment of new, key national labs and innovation centers.

These efforts are part of a larger strategy to create regional innovation hubs and high-level collaborative networks.

Zhang also stressed the importance of deepening technological cooperation across various sectors, and of engaging in international scientific exchange to enhance technological outcomes.

He noted that SOEs will lead in integrating industry, academia and research, accelerating the development of concept verification and pilot testing programs.

This approach aims to transform more scientific achievements into market-ready products that can then be scaled into fully fledged industries, driving efficiency in the commercialization of new technologies.

In addition to these initiatives, Zhang reaffirmed SASAC's commitment to fostering a high-quality innovation ecosystem that supports original research.

This will involve refining investment policy, increasing R&D investment, and advancing reforms that give researchers greater autonomy.

Zhang also called for the establishment of a compliance-based exemption mechanism that accounts for the inherent uncertainties in scientific research, allowing innovators to focus on their work without unnecessary constraints.