The fate of COFCO before and after Ning Gao Ning's parachuting into Beijing

Author: Wei Sanshui
Publisher:
Publish Date: 2006-01-01
Features: Qin Shuo – Editor-in-Chief of Caijing Daily
Chang Xiuzhe – Professor at the Macroeconomic Research Institute of the National Development and Reform Commission
Jointly Recommended by Qin Shuo and Chang Xiuzhe
China National Food and Oil Group (COFCO), with dual characteristics of a dinosaur and a jackal, is truly formidable. – Nanfang Chuangkong
Since taking charge of Hong Kong China Resources in 1999, Ning Gaoning's most important mission has been to guide this trading company to achieve a soft landing and transition into industrial development. To this end, he has consistently focused on two key tasks: internal restructuring and reform within China Resources, and mergers and acquisitions in the mainland Chinese market. – 21st Century Business Herald
China National Food and Oil Group has already marketized its core businesses and has been included in the Fortune Global 500 for ten consecutive years. The two most direct reasons for such success are: first, gradually establishing modern corporate systems and standardized corporate governance through diversified equity systems; and second, enhancing core competitiveness through market-oriented strategies. – Caijing Daily
The Fate of COFCO explores the transformation and restructuring of this traditional foreign trade enterprise, presenting an innovative perspective on the ongoing "differentiation" of state-owned enterprises (SOEs). One type is modern SOEs that prioritize market orientation and seek breakthroughs at both the property rights system and corporate management system levels, thereby becoming new market competitors. The other type is strategic SOEs that primarily focus on public welfare with market orientation as a secondary goal, with core competitiveness built on relatively monopolized resources.
In the author's view, the breakthrough in market-oriented property rights systems and the standardization of corporate management systems should be the path chosen by competitive SOEs. As reforms accelerate, strategic SOEs will undergo further differentiation, with some transforming into competitive SOEs. This will require further breaking monopolies and challenging existing industrial structures. Such exploration is beneficial.
The Fate of COFCO explores the transformation and restructuring of this traditional foreign trade enterprise, presenting an innovative perspective on the ongoing "differentiation" of state-owned enterprises (SOEs). One type is modern SOEs that prioritize market orientation and seek breakthroughs at both the property rights system and corporate management system levels, thereby becoming new market competitors. The other type is strategic SOEs that primarily focus on public welfare with market orientation as a secondary goal, with core competitiveness built on relatively monopolized resources.
In the author's view, the breakthrough in market-oriented property rights systems and the standardization of corporate management systems should be the path chosen by competitive SOEs. As reforms accelerate, strategic SOEs will undergo further differentiation, with some transforming into competitive SOEs. This will require further breaking monopolies and challenging existing industrial structures. Such exploration is beneficial.