Li Shousheng, president of the Petrochemical Federation: Comprehensively implement the spirit of the 20th CPC National Congress and accelerate the construction of world-class enterprises

At the important moment when the whole party and the people of all ethnic groups throughout the country conscientiously studied and implemented the spirit of the 20th National Congress of the Communist Party of China and comprehensively promoted the great rejuvenation of the Chinese nation with Chinese-style modernization construction with pride, and in the new journey of the vast number of cadres and workers in the whole industry striding forward from a chemical country to a strong country, the 2022 Top 500 Petroleum and Chemical Enterprises Sales Revenue Conference and Accelerating the Construction of World-class Enterprise Summit Forum was held
in Beijing in the form of an online video conference 。 On behalf of the China Petroleum and Chemical Industry Federation, I would like to extend my warm congratulations to the conference! I would like to extend a heartfelt welcome to the leaders, entrepreneurs, experts and scholars and friends from the press who have overcome the difficulties of the epidemic and attended the conference!

The 20th CPC National Congress is a very important congress
held at the crucial moment when the whole party and the people of all ethnic groups in the country are embarking on a new journey of comprehensively building a modern socialist country and marching toward the goal of the second centenary struggle 。 The report made by General Secretary Xi Jinping profoundly expounded a series of major theoretical and practical issues related to the development of the cause of the Party and the country, drew up a grand blueprint for comprehensively building a modern socialist country and comprehensively promoting the great rejuvenation of the Chinese nation, scientifically planned the goals, tasks and major policies for the development of the cause of the Party and the country in the next five years or even longer, and is the crystallization of the wisdom of the Party and the people, and is a political declaration and program of action for the Party to unite and lead the people of all ethnic groups in the country to win a new victory in socialism with Chinese characteristics.
It is a programmatic document
of Marxism.
We must comprehensively study and deeply understand the spiritual essence of the 20th National Congress, especially the latest expositions and requirements
of the 20th National Congress on enterprise policies, enterprise innovation and accelerating the construction of first-class enterprises.
General Secretary Xi Jinping clearly pointed out in the report of the 20th National Congress: "Deepen the reform of state-owned assets and state-owned enterprises, accelerate the optimization and structural adjustment of the layout of the state-owned economy, promote the strengthening of state-owned capital and state-owned enterprises, and enhance the core competitiveness
of enterprises.
" Optimize the environment for the development of private enterprises, protect the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, and promote the development and growth
of the private economy.
Improve the modern enterprise system with Chinese characteristics, carry forward the entrepreneurial spirit, and accelerate the construction of world-class enterprises
.
He also emphasized that "consolidate the leading position of advantageous industries, accelerate the completion of shortcomings in the field of related security development, and improve the ability to guarantee the supply of
strategic resources.
" Promote the development of strategic emerging industry integration clusters, and build a new generation of new growth engines
such as information technology, artificial intelligence, biotechnology, new energy, new materials, high-end equipment, and green environmental protection.
"These latest expositions and latest requirements are a great encouragement to the high-quality development of our industry, and also a great impetus to
accelerate the construction of first-class enterprises in our industry.
" We must combine
the study of the latest expositions and requirements of the 20th National Congress of the Communist Party of China with the study of General Secretary Xi Jinping's important speech at the 24th meeting of the Central Deep Reform Commission.
Deeply understand that accelerating the construction of world-class enterprises is a major deployment
made by the Party Central Committee with Xi Jinping as the core, with a deep insight into the "two major trends" at home and abroad, and under the background of "great changes unprecedented in the world in a century" and "socialism with Chinese characteristics entering a new era".
It is necessary to deeply understand General Secretary Xi Jinping's 16-character policy on "excellent products, outstanding brands, leading innovation, and modern governance" for world-class enterprises, which is the encore to
accelerate the construction of world-class enterprises and deepen enterprise reform.

We must closely integrate the reality of China's petroleum and chemical industries, and deeply understand that accelerating the construction of world-class petroleum and chemical enterprises is an arduous task entrusted to our industry by the Party Central Committee, the core content of building a high-level socialist market economic system, building a modern industrial system, and accelerating the construction of a new development pattern, and also a solid foundation
for realizing the leap from a petrochemical country to a strong country.

On February 28 this year, General Secretary Xi Jinping clearly pointed out at the 24th meeting of the Central Committee for Comprehensively Deepening Reform, "Accelerate the construction of a number of world-class enterprises with excellent products, outstanding brands, leading innovation and modern governance, and achieve greater development and play a greater role
in the process of comprehensively building a modern socialist country and realizing the second centenary goal.
" "General Secretary Xi Jinping's series of important expositions on accelerating the construction of world-class enterprises have pointed out the way
forward for the construction of China's petroleum and chemical industry power, and for the innovation, transformation and high-quality development of petroleum and chemical enterprises on the new journey.

This meeting is to seriously organize the leading enterprises in our industry to seriously study the spirit of General Secretary Xi Jinping's important speech, review and summarize the remarkable achievements made in the 20 years of the release of the top 500 chemical enterprises in promoting chemical enterprises to become bigger and stronger, discuss and exchange the research results and practical experience of creating world-class enterprises in the industry, and study the strategic measures for accelerating the construction of world-class enterprises in the whole industry under the new situation, which is a very important meeting
.
According to the arrangement of the meeting, I would like to exchange views with you on how to accelerate the construction of world-class enterprises in light of the actual conditions of China's petroleum and chemical industries:

First, we must deeply understand the extreme importance and development urgency of accelerating the construction of world-class enterprises under the new situation

Looking at the process of global economic development and the history of national competition, we can clearly see that the vitality and strength of a country's economy mainly come from the vitality and strength
of enterprises.
Because enterprises are an important subject
to create and promote economic development.
The competition between countries is mainly reflected in the competition between enterprises representing the
national level.
In a certain sense, the competitiveness of enterprises represents the competitiveness of the country, and the competition level of enterprises represents the level of
competition of the country.
From the current situation of the development of our industry, there are not enough petroleum and chemical enterprises with first-class international competitiveness, and the enterprises with first-class international competitiveness are not commensurate and mismatched with the status of the world's second largest petrochemical country and the first world chemical power, which is a very realistic major gap
.
Conscientiously studying and implementing General Secretary Xi Jinping's important instructions on accelerating the construction of world-class enterprises is a very important and urgent strategic task
facing our entire industry.
Our leaders at all levels, especially the principal leaders of key backbone enterprises, must fully understand the extreme importance and development urgency of accelerating the construction of world-class enterprises under the new situation
.

Over the past 40 years of reform and opening up, China's petroleum and chemical enterprises have made remarkable achievements
on the road of becoming bigger, better and stronger.
20 years ago, we held the first press conference of China's top 500 chemical enterprises, and the total sales revenue of the top 500 enterprises accounted for only 20% of the industry, and last year this proportion exceeded 70%; The threshold for entry of the top 500 enterprises that year was 100 million yuan in main business income, which exceeded 1.
6 billion yuan
last year.
In 2020 and 2021, the number of China's energy and chemical enterprises listed in the world's top 500 has reached 26 for two consecutive years, and a number of large energy and chemical enterprises have not only reached the world-class level, but also achieved obvious results
in the construction of world-class enterprises.

From the analysis of various indicators of China's energy and chemical enterprises listed in the world's top 500, the development quality of China's petrochemical enterprises has been significantly improved, and the competitiveness has been continuously enhanced, which is concentrated in the following three aspects:

First, the innovation ability continues to be optimized, and the development momentum is stronger
.
In recent years, China's petroleum and chemical enterprises firmly grasp the bull's nose of independent innovation, promote funds, talents, policies to key enterprises, key projects, many enterprises in petroleum exploration and development, new chemical materials, special chemicals manufacturing, modern coal chemical industry and other high-end key fields and key industries to accelerate the layout, strength continues to increase, efficiency continues to improve, the ranking of the world's top 500 jumped sharply, the position in the global industry continues to improve
.

Second, enterprise reform has been continuously deepened, and enterprise vitality has been continuously released
.
In the 2021 Fortune Global 500 list, Hengli Group Co.
, Ltd.
, China National Offshore Oil Corporation Limited, Sinochem Corporation, China National Chemical Corporation Corporation, Shaanxi Yanchang Petroleum (Group) Company, Zhejiang Rongsheng Holding Group Co.
, Ltd.
, Zhejiang Hengyi Group Co.
, Ltd.
, and Shenghong Holding Group Co.
, Ltd.
have all risen
significantly from the previous year.
It is worth noting that the two central enterprises of Sinochem and ChemChina have been officially reorganized into the new Sinochem
.
After the restructuring, Sinochem has assets of 1.
6 trillion yuan and sales of more than 1 trillion yuan, making it one of the world's largest comprehensive chemical companies, and after the restructuring, the company has not only further expanded its scale, but also further enhanced its strength in the fields of seed engineering, new material industry and specialty chemicals
.
It is foreseeable that in the future, Sinochem will greatly improve
its comprehensive strength and market competitiveness among the world's top 500 companies.

Third, the rapid rise of private chemical enterprises has become a new highlight
in the development of the industry.
It is worth noting that in the new wave of China's petrochemical development, private petrochemical enterprises have developed rapidly
.
Zhejiang Hengyi Group Co.
, Ltd.
was listed on the Fortune Global 500 list for the first time, ranking 309th with an operating income of US$38.
562 billion in 2020
.
Hengli Group's ranking rose to 67, up 40 places
from the previous year.
At present, Hengli Group has formed a development pattern
of the whole industrial chain of "from a drop of oil to a horse of cloth".
In addition to oil refining, aromatics, polyolefins, polyester, textile, but also in the field of coal chemical industry, degradable plastics, new materials! Similarly, Shenghong Holding Group from Suzhou, Jiangsu Province is also swimming against the current from the chemical fiber field, making every effort to build an integrated refining and chemical project, realizing the expansion of the industrial chain and forming a full-chain business development
from "one drop of oil" to "one silk".
The rise of these private enterprises once again tells us that large enterprises grow up from small enterprises, and famous enterprises stand out
from unknown enterprises.

Although China's petroleum and chemical enterprises have made great progress in recent years, the old problem of being big but not strong has not been fundamentally solved
.
From the overall perspective of the industry, whether it is the output of major products or the scale of enterprises, China can become a world petrochemical power, but compared with the international advanced level, the quality and efficiency of our enterprise development is far from being called a petrochemical power
.

In 2015, when we were preparing the "13th Five-Year Plan" for the industry, I communicated with the giants of several multinational companies, and I told them that from the "13th Five-Year Plan" we will put forward the goal
of leapfrogging from a petrochemical country to a strong country.
After listening to my introduction, they asked me three questions: First, what kind of standards are you proposing for a petrochemical power? Second, how long will this leap in China's petroleum and chemical industry take? Third, when China becomes a petrochemical power, which enterprises can represent China?

I answered all three questions
.
I said that the petroleum and chemical power we proposed has at least four signs: first, there are a number of core technologies with independent intellectual property rights and occupying the commanding heights of the industry; Second, there are a number of large enterprises and enterprise groups with international competitiveness; Third, it has a group of world-class technical and management talents and product brands; Fourth, it has world-class industry operation efficiency and economic benefits
.
For China's petroleum and chemical industry, how long will it take to complete the leap from a big country to a strong country? My answer is that it will take at least 15 years, that is, the time of
three "five-year plans".
Who can represent China when it becomes a petrochemical power? My answer at that time was that there were many enterprises that could represent China, such as PetroChina, Sinopec, CNOOC, Sinochem, ChemChina, and I named all the central enterprises
.
But several CEOs of multinational companies barely had expressions on their faces, and I could see that they didn't quite agree with me
.
I asked them, who do you think can represent China? BASF CEO Dr.
Bo Kaici told me that he believes Yantai Wanhua can represent China! Later, they told me that the central enterprises you talked about were all large enterprises formed in the context of
the state, and did not grow up in market competition.
The views of CEOs of multinational companies may not be entirely correct, but I think we should think about their views from the positive side, and we can understand the views of multinational companies on state-owned petrochemical enterprises from another side
.

What I would like to emphasize here is that the 15 years of the planning process from a big country to a strong country have now passed, and only about 10 years remain
.
The leap from a big country to a strong country and the task of accelerating the construction of a world-class enterprise are not only arduous but also urgent
.
In the snap of 10 years, there must be a sense
of urgency to "race the day".
The leap from a big country to a strong country and the construction of world-class enterprises are not only a catch-up task for China's petroleum and chemical industry, but also strive to achieve a globally leading goal
.
The transformation from a follower to a leader is by no means a simple increase in investment and expansion of scale, it is necessary to reconstruct the corporate strategy, accurate market positioning, accelerate innovation and transformation, enhance innovation capabilities, cultivate new competitive advantages, industry leaders should take the lead in getting out of history, creating the future, and strive to improve the core competitiveness of our enterprise driving market, to achieve greater development and play a greater role
in the construction of a strong country.

Second, the four core symbols proposed by General Secretary Xi Jinping provide a fundamental basis for building a world-class enterprise with Chinese characteristics

What is a world-class enterprise? This is the question
we must and must answer first in the process of creating a world-class company.
Are the world's top 500 companies world-class enterprises? I think that because the world's top 500 companies are formed by a single order of operating income, therefore, the companies that enter the world's top 500 are veritable top 500, not necessarily the world's top 500, let alone world-class enterprises
.

General Secretary Xi Jinping's "Guiding Opinions on Accelerating the Construction of World-class Enterprises" deliberated and adopted in the report of the 20th National Congress and the 24th meeting of the Central Deep Reform Commission put forward the 16-character goal of "excellent products, outstanding brands, leading innovation, and modern governance" of world-class enterprises, pointing out the direction and providing guidance
for how to accelerate the construction of world-class enterprises and deepen enterprise reform.

The connotation of the so-called world-class enterprise refers to the multinational business enterprise
that has maintained the world's leading product competitiveness, industry leadership and social influence for a long time in a specific industry or business field, and has been widely recognized 。 So, what kind of enterprise is a world-class enterprise? What are its characteristics and its criteria? General Secretary Xi Jinping summarized the 16 words of "excellent products, outstanding brands, leading innovation, and modern governance", and put forward a clear goal and standard system, which is not only a sign of high-quality development, but also answers what kind of world-class enterprises Chinese enterprises will build in today's new era, and the goal of these "16 words" will surely provide a fundamental follow-up and practical direction
for China to accelerate the construction of world-class enterprises in the "14th Five-Year Plan" and even longer.

Product excellence is the hard power of enterprises and the last word
of development.
The image of the product is the image of the enterprise; The quality of the product is the level of
the enterprise.
World-class companies must have excellent products
.
What is excellence? It is outstanding, beyond the ordinary, can be higher than similar products, stronger, can bring consumers a richer sense of gain, a thicker sense of happiness, a more wonderful sense
of sublimation.
World-class enterprises should have a real high value-added, high-tech content
, different products, with core competitiveness.
Excellent products come from excellent technology, excellent technology and excellent service, excellent technology makes products become the leaders of the times, excellent technology makes products become quality priority, excellent service makes products become warm heartwarmers
.
Products and services are the foundation of a business, and world-class enterprises must be able to provide high-quality products and services
to the market.

Outstanding brand is the soft power of development, but also the hard work
of enterprises.
Brand is an important embodiment of the competitiveness of enterprises and even countries, and an important resource
to win the world market.
Brand building is a "short board"
that our industry and our company have not paid attention to for a long time.
The practice of market competition tells us that brand is productivity, brand is credibility; A good brand brings a good market, and a good brand brings competitiveness
.
World-class companies must have outstanding brands
.
What does it mean to be outstanding? It is excellent and remarkable
.
Excellent refers to the connotation, and the connotation of the brand should contain excellent quality content, functional content, cultural content, and spiritual content; A good brand should be a household name, should be world-famous, and should become a banner flying high in the world economic market
.
The brand not only has high market recognition and market influence, but also has high market value
.

Leading innovation is the driving force of development and the engine of high-quality development of
enterprises.
Whether it is excellent products or outstanding brands, it requires innovation leadership to constantly catalyze, change and sublimate
.
The report of the 20th National Congress emphasized that science and technology are the primary productive forces, talents are the primary resources, and innovation is the primary driving force.

As an enterprise, we must take innovation as our soul
.
Only when an enterprise takes the lead in mastering the core technology of the industry, the enterprise will grasp the future of the industry, which is the extreme importance of
innovation.
Innovation comes from science and technology, from talents, and from management
.
To lead in innovation, we must make our own scientific and technological research and development, talent resources become highlands, and we must have a unique set of innovation methods, management systems and technology sources, which is the fundamental driving force and core competitiveness
of our industry to create world-class enterprises.

Governance modernization is the guarantee of development and the cornerstone
of the system to accelerate the construction of world-class enterprises.
Management and system are important guarantees for world-class enterprises, and first-class management and system come from first-class management ideas
.
According to Drucker's view, the enterprise should be a scientific and rational system, and the enterprise should have its own mission, long-term strategy, rules and regulations, cultural style and clear enterprise performance evaluation system
.
The modern governance of China's first-class enterprises should not copy the Western model, but should be modern governance with Chinese characteristics, should fully reflect the leadership of the Party, fully reflect the advantages of the Chinese system, fully reflect the characteristics of modern enterprises, and fully reflect China's excellent traditional culture
.
In China, to build a world-class enterprise, we should create a new modern governance model
with Chinese wisdom, Chinese characteristics, Chinese vitality and Chinese efficiency.

The report of the 20th National Congress put forward for the first time the new concept
of "Chinese-style modernization".
Chinese-style modernization is socialist modernization under the leadership of the Communist Party of China, which not only has the common characteristics of modernization of other countries, but also has Chinese characteristics
based on its own national conditions.
The four standards of world-class enterprises with Chinese characteristics also require us to constantly enrich and enhance the concept and connotation
of "Chinese-style modernization" in the course of practical exploration.

3.
Comprehensively carry out benchmarking activities for the core competitiveness of world-class enterprises

Carrying out benchmarking activities is the most effective way for us to
find gaps, formulate measures, promote catch-up and overtaking, and seek leapfrogging.
Our gap with the world's leading companies is both holistic and individual.

Therefore, benchmarking activities are not only to find out the overall gap, but also to find out the individual gap, and the benchmarking must not be large, let alone broad
.
It is necessary to look for gaps in a concrete, in-depth and meticulous manner and see the shortcomings
.
It is necessary to find the main problems restricting the development of enterprises in the benchmarking with internationally renowned enterprises, grasp the main aspects of contradictions, rectify and reform one by one, and make contributions for a long time, and strive to make substantive breakthroughs and catch up with competitiveness in subdivided fields and key links
.

Compared with the world's top 500 enterprises, from the overall analysis, the gap between China's petroleum and chemical enterprises is very obvious
.
Taking the Fortune Global 500 list as an example, the number of companies on the list in China has increased by 11 times
in the 20 years from 2000 to 2020.
In 2019, China had 129 companies on the list, surpassing the United States of 121 for the first time, 133 Chinese companies and 121 American companies in 2020, 143 Chinese companies on the list in 2021, an increase of 10, and 122 companies in the United States, an increase of only 1
.
It shows that China's enterprises are superior to the United States
in terms of growth, market potential, development prospects and development space.
Among the 133 Chinese companies listed in 2020, there are 11 petroleum and chemical companies, in addition to Sinopec and PetroChina, which continue to rank among the top five, China National Offshore Oil Corporation, Hengli Group, Sinochem, ChemChina, Yanchang Petroleum (Group) Corporation, Cedar Holding Group, China Aviation Oil Group, Taiwan CNPC Co.
, Ltd.
, and Shenghong Holdings Co.
, Ltd.
, ranking 64th, 107th, 109th, 164th, 265th, 296th, 305th, 409th and 455th respectively
。 In addition, there are 15 energy companies involved in the coal chemical industry, and we have 26 companies on the list, ranking first
in China's industrial sector.

While we see the continuous expansion of the scale of Chinese enterprises and the increasing number of large companies, we must also see that the problem of Chinese enterprises being large but not strong is still very prominent
.
Compared with the world's top 500 companies, the average sales revenue and average net assets of Chinese enterprises have reached the average
level of the Fortune Global 500.
However, the profitability level (profit margin on sales revenue) of Chinese companies is only 5.
4%, compared to the average of 10.
5% for US companies; Average return on equity was 9.
8 percent, compared to 17 percent
for U.
S.
businesses.
In particular, the per capita profit creation gap of domestic enterprises was 57,300 yuan in 2019, while that of foreign enterprises in the same period was 695,100 yuan, and the difference between domestic and foreign per capita profit level was more than
10 times.

Although from the overall analysis, we see the gap between Chinese enterprises and multinational companies, I believe that the root cause of the overall gap lies in the gap between individuals, and the individual gap is the key constraint of the overall level
.
The focus of our industry benchmarking must be placed on
individual micro-benchmarking.
This kind of benchmarking is more targeted and motivating
.
Different industries and different enterprises must choose an enterprise with the same industry and the same product type for benchmarking, so that the gap found is really meaningful
.
In the benchmarking of enterprises, I hope that every enterprise should firmly focus on four core areas:

First, focus on corporate strategy
.
Strategy is a choice
for the future.
Only when a company knows where it is going can it reach its destination
as quickly as possible.
Companies that have already started to walk without knowing their destination will be full of blindness and danger
.
Strategy is the direction and goal of guiding the future development of enterprises, and is the advanced and accurate choice
of market positioning.
Almost all world-class enterprises have their own advanced corporate strategy, and advanced, accurate and clear corporate strategy has become the primary feature of
world-class enterprises, especially "century-old stores".
In the current world market is constantly changing, rapid technological changes, extremely fierce competition, the market leaders are drastic changes, today is the market leader, does not mean tomorrow is still the market leader
.
In order to ensure the leading position of the enterprise tomorrow, every enterprise must work the corporate strategy
.
In the face of the construction of world-class enterprises, every enterprise must answer the following two sets of questions in the focus of corporate strategy:

Today's question

Which customers are served today?

What channels do you connect with your customers today?

Today, who are the competitors?

What is competitiveness based on today?

Today, where does the profit come from?

What technologies and capabilities make you irreplaceable today?

Which end markets are involved in today?

The question of the future (5-10 years).

Which customers will be served in the future?

What channels will you use to connect with customers in the future?

In the future, who are the competitors?

What is the future where competitiveness is based?

In the future, where will the profits come from?

What technologies and capabilities will make you irreplaceable in the future?

Which end markets will you participate in in the future?

If business leaders don't provide clear, appropriate, and detailed answers to the questions about the "future," or if they do have answers that are much the same as the answers to the questions in today, their companies are unlikely to be the market leader of the future
.
Corporate strategy is by no means a "big talk", let alone an "air-to-air" icon and slogan
.
We must focus on the benchmarking of corporate strategy, so that the headlights of our enterprises shine farther and brighter
than others.

The second is to focus on the products
of enterprises.
This is an important criterion
emphasized by General Secretary Xi Jinping.
Products are the meticulous work
of enterprises dedicated to consumers and the market.
In a certain sense, the image of the product is the image of
the enterprise.
The Apple mobile phone represents the image of Apple, Toyota Motor represents the image of Toyota, and polymer materials represent the image
of BASF.
MDI represents the image of Wanhua Chemical, and rubber liquid fluidization technology represents the image
of Sailun Company.
Therefore, any enterprise speaks in the market is a product, and consumers also know the enterprise according to the
product.
An important criterion for creating a world-class enterprise is to have excellent products
.
For industry leaders, you must be clear that among your company's products, several of them belong to the industry, belong to the world's first or only products, and belong to the first or only product in the market, which is your strength
.
Because behind your company's first or only product, it is the embodiment of the company's technical level, the embodiment of the company's innovation ability, and the embodiment
of the company's customer needs.
In the pursuit of product excellence, any company is not the best, only better, which is a never-ending pursuit process
.

As far as we know, in the process of creating world-class leading enterprises in the whole industry, many enterprises attach great importance to product innovation and industrial structure adjustment
.
For example, after independent innovation and breakthrough in the key technology of MDI, Wanhua Chemical has continuously developed TDI, HDI, IPDI and other series of products, becoming the world's largest, most complete and best quality isocyanate manufacturer, it is the high-end products that have promoted Wanhua Chemical to the world's leading enterprises
。 The newly reorganized Sinochem Group is reorganizing the business of Sinochem and ChemChina, they firmly grasp the core of product structure and industrial structure reorganization, plan 10 advantageous industrial chains and 5 potential industrial chains to be built in the future, accelerate the formation of the company's excellent products and industrial clusters, and strive to build Sinochem into a world-class comprehensive chemical enterprise
。 In the adjustment of product structure, we also very much hope that central enterprises such as Sinopec, PetroChina and CNOOC, which have always been in the forefront of the world's top 500 rankings, will continue to create fresh experience and make new contributions
in optimizing the industrial structure and improving efficiency.
Industrial restructuring is a very important and arduous core task for every company, and it must be grasped in
a down-to-earth manner.
While focusing on product benchmarking, we must also carefully analyze the gap
in our brand building.
Brand building is a long-term accumulation of growth process
.
In recent years, many enterprises in our industry have strengthened and improved their brand building, and our federation will also jointly issue the "Initiative to Accelerate the Cultivation and Expansion of Industrial Brands" with eight national industry associations such as machinery, metallurgy, and light industry, but compared with the brand building of multinational companies, our gap is still very large, and we must speed up the progress, grasp the work, and strive to catch up
.

The third is to focus on enterprise operation efficiency and economic benefits
.
Marx believed that socialism could defeat capitalism, and the core point was that socialism could create much higher labor productivity
than capitalism.
Business efficiency and economic benefits are the core of high-quality development and the core competitiveness
of world-class enterprises.
It is precisely at this point that there is still a big gap
between our enterprises and multinational corporations.
Based on the data of the world's top 500 released by Fortune magazine in 2019, I will compare several major efficiency and benefit indicators of our entire industry and Chinese petrochemical enterprises and multinational companies:

Comparison of all industries and Chinese petrochemical enterprises and multinational companies (US$ billion, USD 10,000)

Note: The annual average exchange rate is 6.
7518 yuan

From the above comparison, we can clearly see the huge gap
in our business.
Why is operational efficiency so important? Because the indicators of operational efficiency not only represent the advanced level of enterprise productivity, but also represent the advanced degree
of production relations.
Operational efficiency is the comprehensive embodiment of strategic management, technology management, process management and personnel management of the entire enterprise, and it is also the fundamental symbol
of a world-class enterprise.

The fourth is to focus on users and market services
.
The service of users and the market is not only the current but also the increasingly important competitiveness
of world-class enterprises in the future.
At present, the world's chemical powers and world-class multinational companies have put serving users and markets in a prominent position
of core competitiveness.
The Japanese chemical industry proposes that the chemical industry should create a comfortable life for the Japanese people, and let the Japanese people feel the contribution
of the chemical industry to a comfortable life every day.
Japanese chemical companies need to provide "impressive services"
to users and markets.
For more than 180 years, BASF has put customer service first
.
In its new company strategy for the next 10 years, BASF has clearly put forward the slogan
"Creating new chemical roles".
In serving users, BASF has made a major change in differentiating user services for different businesses, moving from traditional services to customized services, providing users with a range of high-performance products
.
High-performance products cover chemicals, plastics, fine chemicals, crop protection products, crude oil and natural gas, etc.
, humbly listen to users' opinions, sincere user service, and help customers succeed.

Their wish is that whenever a user encounters difficulties, the first supplier that comes to mind is BASF
.

To serve users and serve the market, our industry gap is very large
.
During the preparation of the "13th Five-Year Plan", Mr.
Li Weicheng, CEO of Dow Chemical, told me that in the eyes of multinational companies, China's petroleum and chemical industry is a raw material industry, you do not pay attention to the terminal market, the industrial chain does not extend to the terminal market, only sell bulk raw materials
.
At the same time, he also told me that the technical content of terminal products is not low, and the economic benefits are not bad, and he hopes that China's petroleum and chemical industries will boldly embrace the terminal market
.
Therefore, focusing on users, focusing on the market, and comprehensively improving the level of our industry serving users and markets, the gap is huge, the space is grand, and the prospects are great
.

The above four focus areas of benchmarking, hope that every entrepreneur can follow the method of self-diagnosis, find out the gaps, formulate measures, implement responsibilities, and improve within a time limit, and promote the construction of
world-class enterprises in the whole industry with solid benchmarking.

Fourth, give full play to the role of entrepreneurs and accelerate the construction of enterprise systems and culture

Practice tells us that every "successful" enterprise has an "entrepreneur" or "leader"
.
All the companies here today are leaders in our industry, the growth and development of your company are hard-won, and the entrepreneurs of each enterprise are indeed very good
.
But you must clearly understand that today's success is not the same as tomorrow's success
.
We hope that the entrepreneurs of our industry's leading enterprises will not become the "keepers" of yesterday's performance, but the "pioneers"
of tomorrow's development.
Under the fierce impact of the global market, the elimination and adjustment of leading companies will be more ruthless
.
In the face of the tide of creating world-class enterprises, this competition, this elimination, will be more fierce and challenging
.
The leaders of each of our enterprises must be soberly aware of their responsibilities and become pioneers
for the future.
Future-oriented pioneers must have a forward-looking strategic vision and a vision
for the future.
Future-oriented pioneers must have the ability to constantly create and capitalize on new opportunities as they emerge, and the courage
to challenge more than desperately catching up with competitors.
Because pioneers like to take the road with challenges, like to take the road with many opportunities; Achievers like to take the most familiar path and prefer to take the path
with the least resistance.
I hope that the leaders of leading enterprises in the industry will have the courage to pioneer for the future, which is reflected in the five "both" and "able": that is, they can compete within the existing industrial structure and compete to shape the future industrial structure; Can compete for product leadership and core competence; It can participate in competition as an individual enterprise and as an alliance of enterprises; It can maximize the "success rate" of new products and the learning rate of new market knowledge; It can not only maximize the development of the domestic market, but also maximize the development of the domestic and international dual circulation market
.
These five "both" and "able" are new topics for each of us entrepreneurs under the new situation, and they are also high requirements
for leaders of leading enterprises in the industry.

In the future-oriented competition, we must give full play to the role of entrepreneurs, encourage entrepreneurs to innovate and explore for the future, tolerate their failures and mistakes in future-oriented innovation and exploration, and create a good legal environment
for the growth of entrepreneurs.
But I would also like to emphasize that in the process of creating world-class enterprises, it is not enough to rely solely on the role of individual entrepreneurs
.
A person can make a business and destroy a business
.
While emphasizing the role of entrepreneurs, we must also believe in the power of system, talent and culture, and truly build enterprises into "century-old stores"
that are formalized, standardized and sustainable.

System construction is a fundamental and long-term basic construction of enterprises, and we must continuously strengthen and improve
them in the future-oriented practice of enterprises.
For a world-class enterprise, the strategic decision-making system, R&D investment system, risk prevention system and incentive and constraint system are all related to the long-term stability of the enterprise, and it must not only maintain its own characteristics on the basis of enterprise practice, but also continuously improve and improve, and strive to explore the construction of a modern enterprise system with Chinese characteristics and a legal person system
with modern governance on the land of China.

Talent construction is the fundamental construction of
first-class enterprises.
The report of the 20th National Congress pointed out that adhering to the principle of the party managing talent and cultivating a large number of high-quality talents with both ability and political integrity is a major plan
for the long-term development of the country and the nation.
Meritorious achievements, wide range of
talents.
Strive to cultivate more masters, strategic scientists, first-class scientific and technological leaders and innovation teams, young scientific and technological talents, outstanding engineers, craftsmen of major countries, and high-skilled talents
.
Whether it can cultivate a large number of urgently needed talents in industries and enterprises, and whether it can form a high-level and efficient management team, which is the core and most critical capability of world-class enterprises, and also the most valuable and valuable capital of world-class enterprises
.
In the current fierce market competition and in the future-oriented Chinese-style modernization construction, our industry urgently needs to accelerate the cultivation and cultivation of four categories of backbone talents, including strategic management talents, technical leaders, outstanding entrepreneurs and craftsmen talents in major countries, which is the fundamental guarantee and foundation
for our industry and enterprises to maintain the world's leading level.

Cultural construction is the soft power construction at the level of enterprise spirit and style, which is related to the value orientation and humanistic characteristics
of enterprise development.
The construction of corporate culture is by no means a refinement of slogans, but the pursuit of common values and the formation
of a unique style.
An excellent corporate culture is a priceless treasure and great spiritual strength
to resist risks, resist difficulties, and flourish.

The construction and cultivation of world-class enterprises must closely combine the role of individual entrepreneurs with the strengthening of enterprise system construction, talent team building and enterprise culture construction, form a strong body that combines management team, staff team, system construction and cultural construction, so that the managers and employees of the enterprise, and the system construction and cultural construction become a vibrant intelligent collective that is seamlessly integrated, and such an enterprise will surely grow into a first-class company
with evergreen foundation.

Comrades, at the 2020 Industry Management Innovation Conference, I once said a sentence: In the face of nearly 30,000 enterprises above the scale of China's petroleum and chemical industry, I want to ask a sharp question is, who can represent China's petroleum and chemical industry at present and in the future? In the United States, DuPont and Dow can represent the United States, in Germany, BASF and Evonik can represent Germany, and in Japan, Mitsubishi and Mitsui can represent Japan
.
Who in China can stand up and say, I can represent China
.
There may not yet be a company that has such capital and level
.
But at today's meeting, I would like to add that when China becomes a power in the petroleum and chemical industry by 2030, the enterprises that can represent China will definitely be among you!

Comrades, the 20th National Congress of the Communist Party of China pointed out, "The next five years will be a crucial period
for the beginning of the comprehensive construction of a modern socialist country.
"Now that the big picture has been drawn, it's time
to set sail.
In such a great era, we feel confident and bold, and we feel a heavy responsibility on our shoulders
.
The curtain of creating a world-class enterprise has been opened, the big ship of our industry to accelerate the construction of a world-class enterprise has set anchor and set sail, facing the sea, facing the rising sun, racing with thousands of sails, and competing for the current, the leading enterprises in our industry will definitely be the first to climb the other side of victory!