Ryu Seujin, considered one of the brains behind China's economic policy and the deputy director of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference, emphasized the need to abandon the distinction and discrimination between state-owned enterprises and private enterprises.
According to the economic media Caixin on the 11th, Deputy Director Ryu recently stated at a seminar on "Survival and Innovation of the Private Economy" held in Shanghai, "We should not classify enterprises as state-owned or private, but rather categorize them according to their size, technology, and other characteristics, and develop corresponding policies accordingly." He said, "Classification of enterprises based on ownership is a remnant left over from the transition from a traditional planned economy to a market economy," and stressed, "Now it is necessary to correct the root cause and return to growth."
Deputy Director Ryu also explained, "With the development of a mature market economy, diversification of capital equity, and integration becoming common, large state-owned enterprises are even listed overseas," adding, "Among the shareholders of private enterprises, there are also direct and indirect state-owned shareholders, making it increasingly difficult in reality to distinguish between private and state-owned."
He also argued that the implicit discrimination between enterprises that has been widespread so far must be abandoned. He emphasized, "Implicit inequalities between state-owned and private enterprises in industrial access, project bidding, capital acquisition, etc., must change," and added, "A system should be established to encourage platform companies and large-scale science and technology-based enterprises to boldly invest, innovate, and participate in key national construction."
Furthermore, he stressed, "We must prevent a regression to the old path of simply following government directives," and said, "The government is generally neither wiser than enterprises nor better at understanding the market. We must understand, protect, and encourage entrepreneurship more than ever."
Regarding state-owned enterprises, he diagnosed, "It is important whether governance reforms are properly implemented and whether talents with entrepreneurial spirit can play a leading role," and added, "Having qualified entrepreneurs is essential for fulfilling the strategic functions assigned by the state."
Commissioner Ryu is regarded as a key brain advising Chinese President Xi Jinping on economic matters. He has worked at the Development Research Center of the State Council since 1994 and has served as deputy director of the Market Economy Research Institute, deputy head of the Macroeconomic Adjustment Research Department, and head of the Industrial Economics Research Department. Since 2018, he has been the deputy director of the Economic Committee of the Chinese People's Political Consultative Conference, and since 2021, a member of the Monetary Policy Committee of the People's Bank of China, the central bank.
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