Jiupai News Special Commentator Qin Ning Recently, the State Administration for Market Regulation issued an announcement stating that it would unconditionally approve China Unicom Venture Capital and Tencent Industrial Investment to establish a new joint venture.

Jiupai News Special Commentator Qin Ning

Recently, the State Administration for Market Regulation issued an announcement stating that it would unconditionally approve China Unicom Venture Capital and Tencent Industrial Investment to establish a new joint venture. Later, China Unicom issued an announcement stating that the establishment of the joint venture was in progress, and stated: "This matter is the normal business cooperation between the company and Tencent . The investment amount involved does not meet the standards that the company should disclose as stipulated in the " Shanghai Stock Exchange Stock Listing Rules ".

A normal business cooperation was led by some self-media and led by netizens who "unknown the truth". So some people lament that Tencent is about to be acquired and fall into the capital of a central enterprise, and some people say with certainty that Tencent has been transformed into a state-owned enterprise. This is a bad statement.

There are several basic facts to be clarified. First, the cooperation between China Unicom and Tencent is a collaboration between their subsidiaries. Specifically, , a venture capital company under Unicom, has set up a new joint venture with Tencent's venture capital company. There is still a difference between cooperation between its subsidiary companies and direct cooperation between the parent company.

Secondly, this cooperation does not involve changes to shares . The two companies each contributed one sum to establish a joint venture, which is a joint investment under the conditions of market economy and has nothing to do with the shares of the two companies. Therefore, there is no question of who holds , let alone who eats who.

Third, this kind of cooperation is to take everyone's needs, not to let anyone suffer losses, but to win-win. According to the announcement released by China Unicom, it can be seen that the joint ventures are mainly engaged in content distribution network (CDN) and edge computing businesses, based on independent research and development to form complete CDN/MEC platform capabilities, operation capabilities and product innovation capabilities. In other words, both sides learn from each other's strengths and weaknesses, and benefit each other.

Fourth, this kind of cooperation between the two companies is not the first time. As early as 2017, China Unicom issued an announcement stating that China Unicom's mixed reform and Tencent have taken great steps in cooperation, and has carried out in-depth cooperation in the fields of cloud computing and , network services, etc. In this context, there is nothing new about China Unicom joining hands with Tencent.

Fifth, the venture capital companies of the two companies are not newly established. Unicom's venture capital company was established in April 2014, and Tencent's venture capital company was established in September 2019. In other words, the establishment of venture capital companies is a normal operation of the enterprise, and each has a lot of projects. Venture capital companies were not established for this cooperation, but the company's strategic deployment.

Sixth, this cooperation is not a "mixed reform". According to reports, some people close to China Unicom said that its cooperation is by no means a "mixed ownership reform" understood by the market, but an ordinary investment behavior.

In fact, even if it is a "mixed reform", there is no need to over-interpret it. As we all know, for many years, state-owned central enterprises have been actively promoting mixed ownership reform, based on "using mixed reform", and introducing various types of social capital through capital increase and share expansion, investment and mergers and acquisitions to enhance their own vitality and vitality. This itself is an important part of the reform of state-owned enterprises. The direction and method are correct, and the effect is significant.

According to statistics, since 2013, the restructuring of state-owned enterprises has introduced more than 2.5 trillion yuan of various types of social capital. At present, the number of mixed-ownership enterprises affiliated to central enterprises and local state-owned enterprises accounts for more than 70% and 54% respectively. Through "mixed reform", a large number of excellent enterprises with outstanding main businesses, excellent corporate governance, strong innovation capabilities and high vitality and efficiency have emerged. Since this is the case, there is no reason to stop "mixed reform", and there is no reason to deny "mixed reform".

of course, it is not that it is "effective when you mix it", nor can it be rushed forward, but that it adheres to "one enterprise, one policy" and advances steadily. In the process of "mixed reform", state-owned enterprises are winners and social capital is also winners. Another thing is to promote "mixed reform" to avoid the loss of state-owned assets. In this case, it is simply a huge mistake to say that Tencent is nationalized.

is quite interesting. Why is the normal cooperation between China Unicom and Tencent misread? Is this misunderstanding intentional, or is it caused by not having enough information? If you set up seedlings and make excuses, or deliberately bring netizens into the ditch, the so-called "misunderstanding" is hateful.

promotes the various ownership economies to learn from each other's strengths and weaknesses, promote each other and develop together. This is an important deployment of the country. What is certain is that the central government will promote "mixed reform" without hesitation. Not long ago, the Secretary-General and spokesperson of the State-owned Assets Supervision and Administration Commission said that the State-owned Assets Supervision and Administration Commission will adhere to the principle of "three causes, three appropriate and three no", implement policies according to local conditions, industries, and enterprises, and implement policies according to individual conditions, control, and participate in the participation. It will not engage in matching, full coverage, or set a timetable, and actively and steadily deepen the mixed ownership reform. In other words, "mixed reform" is not a temporary move, nor is it a single-handed advance, but a long-term persistence in continuous optimization.

Large enterprises are "superficial", small and medium-sized enterprises are "overwhelming", micro-enterprises and individual industrial and commercial households are "luxuriant", and various market entities are competing to develop. This is the necessary meaning of the market economy and the necessary meaning of promoting the healthy development of various ownership economies. In this regard, don’t worry about the loss of state-owned assets when you see state-owned enterprises cooperating with private enterprises, or worry about the loss of state-owned assets or the nationalization of private enterprises. Respect the facts and distinguish right from wrong, so that you will not be led by the rhythm.

Jiupai comment submission email: [email protected]