Caixin
Feb 25, 2021 07:55 PM
BUSINESS & TECH

SOEs Urged to Offer Bigger Bucks to Get High-End Tech Talent

SASAC Director Hao Peng. Photo: VCG
SASAC Director Hao Peng. Photo: VCG

Beijing is poised to embark on new initiatives to support more technology research and development by state-owned enterprises (SOE), including attracting high-end talent, as it continues to push ahead with SOE reforms.

Hao Peng, chairman of the State-owned Assets Supervision and Administration Commission (SASAC), said at a briefing (link in Chinese) Tuesday that centrally administered SOEs should adopt more incentives to attract high-end technology talent to encourage innovation.

Specifically, central SOEs should set aside special salary quotas for key R&D teams and introduce equity and bonus incentive programs, Hao said. That means the salary quotas for such key R&D employees would not be limited to the company-wide salary allocation.

“This could give researchers more autonomy and more room for testing errors, helping them to dismiss concerns and concentrate on their research,” Hao said.

The SASAC’s strategy is part of a drive to improve the R&D innovation capabilities of major state-owned enterprises and is integral to ongoing SOE reforms. Also, adjusting the distribution of state-owned capital has always been one of SASAC’s focuses.

Peng Huagang, secretary general of SASAC, said at the Tuesday briefing the ministerial-level organization would help central SOEs to optimize and adjust state-owned capital distribution in line with marketization.

In the next five years, more state-owned capital will be allocated to areas such as national defense, energy, food supply, new infrastructure, and industry supply chains, among others, according to SASAC.

 Read more  
Wang Tao: China’s Next Five-Year Plan Will Play Down GDP Growth Target

Chinese leaders are poised to approve a raft of new laws and policies at key political meetings next month that will also see the government approve a new five-year plan that will shape policy through 2025.

In 2020, the net profits of central SOEs expanded 2.1% year-on-year, a slower pace of growth compared to 2019’s 10.8%, according to SASAC.

Contact reporter Timmy Shen (hongmingshen@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Follow the Chinese markets in real time with Caixin Global’s new stock database.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code