State-owned enterprises of China

This is a list of state-owned enterprises of China. A state-owned enterprise is a legal entity that undertakes commercial activities on behalf of an owner government. Their legal status varies from being a part of government to stock companies with a state as a regular or dominant stockholder. There is no standard definition of a government-owned corporation (GOC) or state-owned enterprise (SOE), although the two terms are often used interchangeably. The defining characteristics are that they have a distinct legal shape and they are established to operate in commercial affairs. While they may also have public policy objectives, SOEs should be differentiated from other forms of government agencies or state entities that are established to pursue purely non-financial objectives.[1]

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The role of the Chinese Communist Party (CCP) in SOEs has varied at different periods but has increased during the Xi Jinping administration, with the CCP formally taking a commanding role in all SOEs as of 2020.[2][3] For example, Lai Xiaomin, the former president of state-owned China Huarong Asset Management announced in 2015 that during the operation of China Huarong Asset Management, the embedded CCP Committee will play a central role, and party members will play an exemplary role.[4] As Jin et al wrote in 2022,[5]

The overarching principle of SOE reform is to firmly implement the Party’s leadership and the modern enterprise system. This principle creates a political governance system in China’s SOEs—a Party-dominated governance system characterized by Party leadership, state ownership, Party cadre management, Party participation in corporate decision-making, and intra-Party supervision.

Significance

According to academic Wendy Leutert, China's SOEs, "...contribute to central and local governments revenues through dividends and taxes, support urban employment, keep key input prices low, channel capital towards targeted industries and technologies, support sub-national redistribution to poorer interior and western provinces, and aid the state's response to natural disasters, financial crises and social instability."[6]

As of 2017, China has more SOEs than any other country, and the most SOEs among large national companies.[6] China's SOEs are leaders in its industry, equity markets, and overseas direct investment.[6] State-owned enterprises accounted for over 60% of China's market capitalization in 2019[7] and generated 40% of China's GDP of US$15.97 trillion (101.36 trillion yuan) in 2020, with domestic and foreign private businesses and investment accounting for the remaining 60%.[8][9] As of the end of 2019, China's SOEs represented 4.5% of the global economy[10] and the total assets of all China's SOEs, including those operating in the financial sector, reached US$78.08 trillion.[11] Ninety-one (91) of these SOEs belong to the 2020 Fortune Global 500 companies.[12]

History of SOEs

SOE mergers have been routine since 2000, and their pace has increased under Xi.[13] The goals of China's current SOE mergers include an effort to create larger and more competitive national champions with a bigger global market share by reducing price competition among SOEs abroad and increasing vertical integration.[13]

Overall, China's focus on SOEs during the Xi era have demonstrated a commitment to using SOEs to serve non-market objectives and increasing Party control of SOEs[6] while taking some limited steps towards market liberalization, such as increasing mixed ownership of SOEs.[14] Along with increased mergers, promotion of mixed ownership, and management of state capital have continued; results have been mixed.[14]

State Council (Central Government)

China Investment Corporation

SASAC of the State Council
For a more comprehensive list, see State-owned Assets Supervision and Administration Commission § Central SOEs.

As of 2022, SASAC oversees 97 centrally owned companies.[15] Companies directly supervised by SASAC are continuously reduced through mergers according to the state-owned enterprise restructuring plan with the number of SASAC companies down from over 150 in 2008.[16]

Ministry of Finance
Main article: Ministry of Finance of the People's Republic of China § As shareholder

Ministry of Education

Regional Governments

Governments below the national level operate portfolios of SOEs which operate both domestically and abroad.[15]

Anhui Province

Beijing Municipality

Chongqing Municipality

Gansu Province

Guangdong Province

Shenzhen City

Zhuhai City

Guangxi Zhuang Autonomous Region

Guizhou Province

Hebei Province

Heilongjiang Province

Hubei Province

Wuhan City

Liaoning Province

Shanghai Municipality

Shandong Province

Linfen City

Yantai City

As of 2019

Shanxi Province

Tianjin Municipality

Xinjiang Uyghur Autonomous Region

Zhejiang Province

Ningbo City

Hong Kong S.A.R.


See also

References
Library resources about
State-owned enterprises of China
  1. Profiles of Existing Government Corporations, pp. 1–16
  2. Drinhausen, Katja; Legarda, Helena (15 September 2022). ""Comprehensive National Security" unleashed: How Xi's approach shapes China's policies at home and abroad". Mercator Institute for China Studies.
  3. Wang, Orange; Xin, Zhou (January 8, 2020). "China cements Communist Party's role at top of its SOEs, should 'execute the will of the party'". South China Morning Post. Retrieved January 8, 2020.
  4. "《中国华融党委书记、董事长赖小民赴广东分公司调研 强调全系统要总结、学习、推广"广东经验"助推中国华融转型发展》". Archived from the original on 2020-08-27. Retrieved 2020-08-26.
  5. Jin, Xiankun; Xu, Liping; Xin, Yu; Adhikari, Ajay (2022). "Political governance in China's state-owned enterprises". China Journal of Accounting Research. 15 (2): 100236. doi:10.1016/j.cjar.2022.100236. S2CID 248617625.
  6. Pieke, Frank N; Hofman, Bert, eds. (2022). CPC Futures The New Era of Socialism with Chinese Characteristics. Singapore: National University of Singapore Press. p. 138. doi:10.56159/eai.52060. ISBN 978-981-18-5206-0. OCLC 1354535847.
  7. Hissey, Ian (17 December 2019). "Investing in Chinese State-Owned Enterprises". insight.factset.com. Retrieved 15 March 2021.
  8. Tjan, Sie Tek (21 May 2020). "How reform has made China's state-owned enterprises stronger". www.weforum.org. Retrieved 19 October 2020.
  9. CBNEditor (18 January 2021). "China's GDP Breaches 100 Trillion Yuan Threshold after Posting 2.3% Growth in 2020, Disposable Income up 4.7%". China Banking News. Retrieved 13 April 2021.
  10. Wei, Lingling (2020-12-10). "China's Xi Ramps Up Control of Private Sector. 'We Have No Choice but to Follow the Party.'". The Wall Street Journal. ISSN 0099-9660. Retrieved 2022-08-22.
  11. Tjan, Sie Tek (17 October 2020). "China State Firms' Assets grow even as the Government presses for lighter debt". Caixin. Retrieved 19 October 2020.
  12. Tjan, Sie tek (18 August 2020). "The Biggest but not the Strongest: China's place in the Fortune Global 500". www.csis.org. Retrieved 19 October 2020.
  13. CPC Futures The New Era of Socialism with Chinese Characteristics. Frank N. Pieke, Bert Hofman. Singapore: National University of Singapore Press. 2022. p. 140. ISBN 978-981-18-5206-0. OCLC 1354535847.{{cite book}}: CS1 maint: others (link)
  14. CPC Futures The New Era of Socialism with Chinese Characteristics. Frank N. Pieke, Bert Hofman. Singapore: National University of Singapore Press. 2022. p. 141. ISBN 978-981-18-5206-0. OCLC 1354535847.{{cite book}}: CS1 maint: others (link)
  15. CPC Futures The New Era of Socialism with Chinese Characteristics. Frank N. Pieke, Bert Hofman. Singapore: National University of Singapore Press. 2022. p. 137. ISBN 978-981-18-5206-0. OCLC 1354535847.{{cite book}}: CS1 maint: others (link)
  16. "China gives state firms $8 bln to combat slowdown". Reuters. November 28, 2008.
  17. "Zhōngguó bǎowǔ "wúcháng" shōugòu mǎgāng gāngtiěyè jiānbìng chóngzǔ tísù" 中国宝武“无偿”收购马钢 钢铁业兼并重组提速. 第一财经 (Yicai) (in Chinese (China)). Shanghai. 3 June 2019. Retrieved 18 June 2019.
  18. "关于方正东亚信托有限责任公司调整股权结构的批复" (in Chinese). CBRC. 4 November 2016. Retrieved 9 January 2017.
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