Honorary Dean Li Rongrong Lectures on EMBA Class

　　Prof. Li Rongrong, Honorary Dean of CoME, Deputy Director ofCommittee for Economic Affairs, CPPCC, former Chairman of State-ownedAssetsSupervisionandAdministration Commission of the State Council (SASAC), gave a lecture for EMBA students on 1 December 2013. With years of enterprise management experience, he pointed out that “Enterprises must be run in line with rules”.

　　After reviewing the reform of State-owned enterprises in the past 35 years, Li Rongrong points out that China’s state-owned enterprises (SOEs) have gained rapid growth in the competition with profound changes happening to the management system, governance structure and operations. At present, the SOEs have become the legal entities and real players of market economy which can operate independently, enjoy decision making autonomy and self-finance. Such a development with Chinese characteristics lies in following the rules of running enterprises.

　　According to Li, following the rules may be explained in four aspects. At the national level, it must be insisted to separate the functions of the government from those of enterprises, state assets management authorities, to separate the ownership from the authority of enterprises, to unify rights, obligations and responsibilities, to restructure the management integrating assets, personnel and business, to clarify the status of SOEs as market players in laws and regulations, and to establish and improve the systems accordingly. For the investors, it is essential to protect and grow corporate assets by clarifying the property rights and authority –responsibility relationships. At the corporate level, decentralization shall be reinforced to develop such business units that set up their own decisions and market operation at their own risk, and to enhance enterprises’ competence by attracting strategic investment, shareholding re-structure and listing in the capital market. Besides, corporate governance shall be improved by a series of reforms of management mechanism, distribution system and so on. As for individuals, it is important to strengthen their sense of responsibility to work more actively, no matter they are corporate leaders or employees.

　　In 1968, Li graduated from department of chemical engineering ofTianjin University, majoring in electro-chemistry. He started working in a factory in July 1968, and was elevated to head of the factory. Since 1986, he had served in various posts and was elevated to the director and Party chief of State Economic and Trade Commission (SETC). He witnessed the whole course of China’s opening up, specific to the three stages of “warm-up, preliminary, race” of SOEs’ reform. His personal experience and profound insight into China’s reform are very valuable for the students.