Efforts be focused on doing well the main business, economic commentary

Sometime ago, the Central government has taken a series of macro-control measures over such overheated industries as the iron and steel, electrolytic aluminum and cement. Some enterprises in these sectors in a difficult situation for survival, especially the civilian-owned enterprises sought one after another the central enterprises to put in or hold shares in order to get out from the awkward predicament. Some of the central enterprises hold that this is a very good chance for them to get larger, ready to negotiate for buying over. For this the State-owned Assets Supervision and Administration Commission of the State Council issued a special notice emphasizing that a report system must be taken before the central enterprises to buy over the enterprises of suchlike. This is, first of all, a requirement for the central enterprises to take the lead in carrying out the state macro-control policy. And secondly, it is hoped that the central enterprises must bear in mind a correct orientation and determination to do well and make strong their main businesses without being disturbed by other interests and objectives.

The competition between enterprises is a competition of comprehensive strength but it is first the competition of their main businesses. Only by enhancing the competitive strength of the main business can the enterprise enjoy a favorable position in the market competition. Though recent years have witnessed a positive progress of the central enterprises in doing well and making strong their main businesses yet due to historical reasons, it still remains relatively a popular problem among them that their main businesses are not outstanding and strong in core competitiveness. On the one hand, quite a number of enterprises see a bit too many main businesses and on the other part of the enterprises have so far no definite main businesses of their own. According to a rough statistics, among the 190 central enterprises, 50 of them have 4 or more than 4 main businesses and 50 see relatively outstanding main businesses of their own. To have too many main businesses, especially the poor interrelationship between these businesses, is of no good for enterprises to do well and strong their main businesses, neither good for enhancing the competitiveness nor good for the sustainable development of the enterprises.

To do well and strong the main business requires first and foremost a correct selection of the main business. However, to make a good selection of main business requires strategy and farsightedness. The central enterprises must grasp well the main orientation and strategy for development. It's necessary for them to determine their own statuses in the major matrix of the national economic development, in the objective for an overall building of a well-off society, in the selection for following a new road of industrialization and in catering to the new situation of economic globalization. They have to make a full consideration of the strategic adjustment of national economic structure and an overall distribution and arrangement, and a full consideration of the basic conditions of energy sources, resources and environment as well.

To highlight the main business needs determination and valor. Subjecting to periodicity, the development of most of trades and industries is influenced by the market fluctuation, which sees a boom sometimes and a slump at other times. With main business selected one must not lose confidence even though the business is on the ebb. It is often the time for examining the competitive ability and the opportunity for speeding up development of the enterprise when the trade is falling into a depression with most of enterprises mired in difficulties.

To make strong the main business needs strategy and techniques. The most important point here is work hard on the progress of technique. Centering round the development of the main business it is necessary to strengthen the sci-tech research and development so as to master the nuclear technology of the trade so soon as possible. By making full use of the favorable policies it is to push ahead aggressively the separation of major and minor businesses, realizing the system transformation for subsidiary industries and necessary to cut off branches for optimizing the stems. It is also necessary to step up the informationization management of enterprises and by way of renovation and creation in business circulation to make enterprises to react more subtly to the market thereby further enhancing the competitiveness. And finally it is necessary to put innovation of mechanism and system in a prominent place, to push forward the reform for share-holding system in multiple ways and forms, realizing multilateral investment bodies and making improved the management structure by corporate persons

For the moment, China is at an important juncture for the redistribution and strategic realignment of the state-owned economy. The central enterprises have to remain sober minded, strengthen the senses of urgency, of crisis and responsibility, make determined to give prominence to main businesses, readjustment of structure so as to push the central enterprises onto a new arena in their development.

By People's Daily Online