This year's government work report has made clear the key tasks of state-owned enterprises (SOEs) in China, including one to complete the three-year action plan for the reform of SOEs.

Central SOEs have taken a series of measures to promote strategic restructuring and business integration. China's State-owned Assets Supervision and Administration Commission (SASAC) said net profits of central SOEs expanded to 1.75 trillion yuan ($277 billion) in the first 11 months of 2021. Adjusting and optimizing the structure of state-owned capital becomes crucial. 

Professor He Ping from Tsinghua University said that these state-owned companies must merge to avoid unnecessary competition. This will give full play to the competitive advantages of SOEs as well, he added.

By the end of last year, the 70 percent of the SOEs reforms target has been achieved and the final 30 percent is estimated to be achieved before the second half of 2022. During this year's Two Sessions, deputies to the National People's Congress are paying more attention to the next step of SOEs restructure.

To further implement the three-year action plan, it is necessary to ensure the operating model is more efficient and guarantee a good talent promotion channel for all the employees.

Research fellow at the National Academy of Development and Strategies Xia Lu pointed out that the restructure of SOEs is focusing on saving resources and benefiting both employers and workers. He added that SOEs should also clarify their main responsibility and core business, and focus on that to be more efficient.

To move forward, resources integration and structural reform are the keys to China's state-owned enterprises' development. Deputies to the National People's Congress also suggest that the successful reformed SOEs should share their experiences with other enterprises.

Sinochem Group Chairman Ning Gaoning, also a member of the Standing Committee of the Chinese People's Political Consultative Conference National Committee, said that the merge between Sinochem and the China National Chemical Corporation included not only the headquarters, the management parts, but every line of business and employees. He said that with the value, technology, and supply chains from both companies combined, Sinochem is turning into a brand new company.