Draft revision of state-owned assets law improves multiple provisions on second reading

The draft State-Owned Assets Law was submitted on November 2 for a second review at the 25th session of the Standing Committee of the 14th National People's Congress. The second review draft clarifies that state-owned asset management and supervision work should adhere to coordinating development and security, and improves relevant provisions on the paid use and rational allocation of state-owned natural resource assets. It is reported that the second review draft adds "adhering to coordinating development and security" to the principles followed in state-owned asset management and supervision work; in accordance with the provisions of the Constitution, it adds "ensuring the consolidation and development of the state-owned economy." At the same time, the second review draft improves relevant provisions on the paid use and rational allocation of state-owned natural resource assets. First, it adds a provision that natural resource assets such as state-owned land, minerals, and sea areas shall be subject to a paid use system, and relevant use rights shall in principle be transferred through competitive means; second, it adds a provision that the allocation of state-owned natural resource assets shall adhere to protection first and rational utilization, and strictly comply with requirements such as territorial space planning, use control, and ecological environmental protection. In addition, the second review draft improves relevant provisions on the performance of state-owned asset owner responsibilities by the central and local governments and by the government and authorized departments. Among them, it adds a provision that large state-funded enterprises determined by the State Council that are related to the lifeline of the national economy and national security, and state-funded enterprises in fields such as important infrastructure and important natural resources, shall have their investor responsibilities performed by the State Council on behalf of the state, and shall perform owner responsibilities for the state-owned assets of the corresponding enterprises. The second review draft also improves relevant provisions on the basic management system of state-owned assets and further strengthens the management of state-owned asset returns.