Restructuring is a priority for SOE

China’s top State assets regulator announced on Wednesday that the nation will start restructuring and integration efforts within its centrally managed State-owned businesses this year, with an emphasis on industries including information communication, new energy, and equipment manufacturing. Li Bing, deputy secretary-general of the State-owned Assets Supervision and Administration Commission of the State Council, stated at a press conference in Beijing that these actions will encourage central SOEs to explore opportunities and cultivate new advantages in addition to better stimulating growth of strategic emerging industries. According to Li, central SOEs’ priority for this year would be to accelerate the development of the modern industrial system and to deepen strategic cooperation within the industrial chain ecosystem.

 

In 2023, China implemented several measures aimed at restructuring and integrating SOEs in the center to increase the effectiveness of their resource allocation. For instance, in November, China Electronics Technology Group Corp. successfully restructured China Hualu Group Co Ltd., strengthening its position as a leader in the electronic information industry and augmenting its capacity to provide essential technological goods. According to SASAC, the operating income of central state-owned enterprises (SOEs) in 2018 was 39.8 trillion yuan, while their total profits came to 2.6 trillion yuan ($362.36 billion). In 2023, central SOEs’ fixed-asset investments, which included real estate, increased 11.4 percent annually to 5.09 trillion yuan.

 

In 2023, central state-owned enterprises (SOEs) invested a total of 2.18 trillion yuan in strategic emerging sectors, indicating a 32.1 percent annual growth. According to SASAC, their research and development spending reached 1.1 trillion yuan, surpassing the 1 trillion yuan mark for two years in a row. Last year, central state-owned enterprises (SOEs) started a number of important initiatives in industries like automotive chips, carbon fiber manufacture, and hydrogen production. Additionally, they founded new companies in a variety of sectors, including satellite internet, quantum communications, and laser manufacturing.

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