China has unveiled a new guideline aimed at enhancing the modern corporate system with distinct Chinese characteristics, featuring 19 specific measures designed to reinforce the Communist Party's leadership within corporate structures, optimize governance frameworks, and provide more scientific management approaches. This development was reported by the Xinhua News Agency on Monday.

The guideline, released by the General Office of the Communist Party of China Central Committee alongside the General Office of the State Council, seeks to invigorate corporate entities, fostering modern businesses that are more dynamic, resilient, and competitive within the global marketplace.

Among its significant proposals, the guideline establishes a five-year target for instituting a modern corporate system that aligns with national circumstances and operational needs. Furthermore, by the year 2035, it aims to refine this corporate framework to significantly enhance the global competitiveness of Chinese enterprises.

This initiative emphasizes China’s unique institutional innovations by integrating modern corporate systems with domestic realities. It also outlines tailored institutional requirements catering to various types of enterprises, providing precise guidance for both state-owned and private firms. Cong Yi, a professor at the Tianjin School of Administration, highlighted this aspect in discussions with the Global Times.

A crucial focal point of the guideline is its explicit support for private enterprises. It encourages the establishment of straightforward, transparent ownership structures while advocating for the optimization of corporate governance among these entities.

Cong further noted that the guideline aligns seamlessly with revisions to the Company Law and the Private Sector Promotion Law, showcasing a strong foundation in systemic planning and a forward-thinking strategic approach.

The National Development and Reform Commission (NDRC), as China's principal economic planner, indicated that the newly issued guideline, alongside the implementation of the Private Sector Promotion Law, prioritizes the enhancement of support services for private sector businesses, as stated in an NDRC announcement on Monday.

The guideline not only encapsulates the lessons learned in corporate system development over more than four decades of reform and opening up but also proposes institutional innovations that respond to emerging trends, including strategies aimed at accommodating technological innovations. Li Changan, a professor from the Academy of China Open Economy Studies, remarked on this advancement.

Fostering innovation is a central theme of the guideline, with specific measures aimed at supporting small and medium-sized enterprises (SMEs). These include facilitating access to innovation resources and offering technological assistance and commercialization support to SMEs.

Additionally, the guideline commits to encouraging leading enterprises in the industry to provide essential services such as proof-of-concept validation and certification processes to support SMEs.

A crucial aspect of China's modernization involves the progress of science and technology. The NDRC noted that enterprises play a significant role in merging technological innovation with industrial development, thereby acting as key drivers for the growth of new quality productive forces.

The guideline seeks to transform the existing development model from one prioritized on speed and scale to one that emphasizes quality and efficiency. By enhancing institutional incentives for innovation within enterprises, it aims to realize the latent innovative potential of these primary market actors, thereby reinforcing the modern corporate framework with Chinese characteristics.