China’s President Xi Jinping has called on state-owned enterprises (SOEs) directly administered by the central government to step up their contributions to Chinese modernization, emphasising they should better serve national priorities, high-quality development and improvement of people’s livelihoods.
Xi made the remarks in an instruction conveyed at a meeting of heads of central SOEs on December 23, 2025, underscoring their pivotal role in the economy and urging deeper reforms and stronger risk prevention.
He said central SOEs should enhance core competitiveness, build world-class enterprises, stay rooted in the real economy, and achieve breakthroughs in key technologies to support major national strategies.
Xi also stressed the importance of upholding and strengthening the Party’s overall leadership, improving institutional frameworks, tightening supervision and combating corruption within SOEs.
Chinese Premier Li Qiang, along with other senior officials, attended the meeting and highlighted the need for SOEs to support major infrastructure projects and accelerate technological and digital upgrades.
The instructions reflect Beijing’s broader push to align state enterprises with strategic national goals during the 15th Five-Year Plan period (2026-2030).
The emphasis on SOEs is part of China’s ongoing economic policy to balance growth, innovation and stability amid global and domestic challenges.
The recent directive from President Xi Jinping highlights the critical role state-owned enterprises (SOEs) play in China's ambitious modernization plans. As China's economy faces both global uncertainties and domestic pressures, SOEs are positioned to be the backbone supporting national stability and development. By urging central SOEs to boost their core competitiveness and innovate technologically, the leadership is clearly prioritizing quality growth alongside traditional economic expansion. This approach aligns with China's broader strategic goals under the 15th Five-Year Plan (2026-2030), which stresses high-quality development, sustainable industrial advancement, and improved public welfare. In practice, this means SOEs will likely increase investments in key infrastructure projects and adopt cutting-edge digital technologies that align with China's push towards a more innovation-driven economy. The focus on building world-class enterprises and breakthroughs in critical technologies also anticipates competition on the international stage, reinforcing China's aspiration to lead in sectors such as information technology, clean energy, and advanced manufacturing. Moreover, Xi’s emphasis on strengthening the Party's leadership, enhancing regulatory frameworks, and combating corruption within SOEs is essential for maintaining accountability and efficient governance. This ensures that SOEs not only contribute economically but also adhere to the political and ethical standards expected by the government. The live breaking news coverage of Xi Jinping’s call to action underlines the urgency and importance of this shift in policy. By mobilizing SOEs to better serve national priorities and improve people’s livelihoods, China aims to balance innovation and stability while confronting multifaceted challenges in both global markets and domestic reform. For those interested in China's economic policies, understanding the evolving role of central SOEs offers insight into how the government plans to navigate the next phase of development. This transformation creates opportunities for collaboration, technological upgrades, and infrastructure growth, signaling a robust commitment to modernization and economic resilience.
