State-owned enterprises (SOEs) have no inherent strengths as equal market entities. Only by effectively enhancing competitiveness and innovation can SOEs truly establish and develop their own advantages, whether in the domestic or overseas market.

Han Wenxiu, deputy director of Central Financial and Economic Affairs Commission, made the statement at a press conference on Friday on the fourth plenary session of the 19th Central Committee of the Communist Party of China (CPC) that concluded in Beijing on Thursday.

"Thanks to constant reform and opening up in the past four decades, Chinese state-owned enterprises have generally integrated with the socialist market economy and become market entities abiding by market rules and participating in the competition on an equal footing", according to Han. 

"The layout of the state-owned economy has also been adjusted and optimized. At present, they are mainly distributed in key industries related to national security and the lifeline of the national economy. SOEs also undertake the functions of providing public goods and universal services," added the official. 

On the other hand, fair competition and common development policy under diverse forms of ownership have been continuously improved, with emphasis on bolstering the development of private economy and foreign-invested enterprises, said Han. 

Han also noted that the country provides equal protection to all market entities and ensures they can make equal use of all factors of production and enjoy support policies in accordance with the law.