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Eliminating state-owned enterprises excess capacity in low-carbon steel pipe industry

Governments are required to pay special attention to the supply-side structural reform in the low-carbon steel pipe industry such as the production balance of cold rolled steel pipe. State-owned enterprises should continue to eliminate excess production capacity in steel, coal and coal power industries and speed up the digestion of all kinds of historical arrears and remaining problems. We will accelerate structural adjustment and accelerate high-quality development. We need to take multiple measures to reduce leverage and liabilities, and resolve all kinds of financial risks. We should pay more attention to the top-level design of the reform and the systematic nature of the reform. Government should deepen the reform of state-owned enterprises from a strategic height to meet new era of the center position.

First, we should give prominence to the construction of a modern system with Chinese characteristics for China steel tube manufacturers. We should effectively delineate the boundaries of the rights and responsibilities of corporate governance bodies. We also need to guarantee the management layer’s autonomy in operation, and speed up the formation of an effective corporate governance structure with checks and balances. Second, we will give prominence to the reform of mixed ownership.We should effectively change the operating mechanism of enterprises, strengthen internal constraints and incentives, protect the legitimate rights and interests of property rights of all types of ownership.

Third, we will focus on the pipe market mechanism.It is necessary to carry out the management layer appointment system and contractual management for mild steel tube manufacturers, and establish a professional manager system according to the principles of “market-oriented recruitment”. We should speed up the reform of the total payroll management system, make overall use of medium and long-term incentives. We should support and encourage responsible state-owned entrepreneurs, make bold use of those entrepreneurs who want to reform, seek careers and operate well.
Fourth, we focused on supply-side structural reform.State-owned enterprises should continue to eliminate excess production capacity in steel such as pipe black steel. Fifth, we will focus on reforming the licensing system.We should select pilot projects, strengthen reform in the organizational structure, operation model. We should give priority to productivity, strengthen the provision of services to micro entities, improve the capacity and level of specialization. The reform of state-owned enterprises is at a crucial stage, which is more important than a dozen programs. It is also a stage where the multiplier effect of reform is greater.We should carry forward the spirit of struggle that has been forged over the past 40 years of reform.Steel pipe industry, steel pipe capacity, state-owned enterprises’ production

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