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By Xiang Anbo & Yang Minglang, Research Team on “The Building of World-Class Large Enterprises with Global Competitiveness”, Enterprise Research Institute, DRC

Research Report, No.62, 2019 (Total 5562) 2019-4-29

Abstract: Some building materials enterprises with excellent performance in China have possessed the initial potential of world-class enterprises. In order to become world-class enterprises, these enterprises have laid less emphasis on growth rate while emphasizing quality and efficiency, optimized the enterprise structure and resource allocation, enhanced the vitality and motivation of enterprises through reform and innovation, improved the quality and efficiency of enterprises by integration and optimization, and increased the market share for further growth with the policy support of the Belt and Road Initiative. Five measures are taken to enhance their global competitiveness including strengthening the main business, turning enterprises into leaner and better performers, strengthening business management, transforming business mode through innovation, and reforming the institutional mechanism. But it should be pointed out that China’s building materials industry is still facing some external challenges, such as overcapacity, low proportion of emerging industries and enhanced resource and environmental constraints. In addition, the industrial development is checked by low degree of integration, high asset-liability ratio, insufficient marketization, weak demand in the international market as well as inappropriate intelligent management. The government needs to encourage large enterprises to take the lead in promoting the de-capacity of cement industry, increase support for new building materials enterprises, consummate relevant policies for restructuring and integration of building materials enterprises, further improve the institutional mechanism of state-owned building materials enterprises and speed up market-oriented reform.

Key words: global competitiveness, world-class enterprises, Chinese building materials industry