China Enhances Cooperation Between State-Owned and Private Enterprises for Economic Growth
China is set to improve the systems and rules governing cooperation between state-owned enterprises (SOEs) and private enterprises, aiming to foster coordinated development and drive economic growth. Lin Qingmiao, Director of the Bureau of Enterprise Reform at the State-owned Assets Supervision and Administration Commission (SASAC), announced the initiative during a press conference on Friday.
Lin emphasized that enhancing collaboration between SOEs and private enterprises is a key task in deepening and upgrading SOE reforms. “We will promote coordinated development of SOEs and private enterprises, advancing the integration of their strengths to stimulate innovation and competitiveness,” Lin stated.
In recent years, SASAC has actively boosted cooperation in four key areas: capital, industrial chains, supply chains, and scientific and technological innovation. These efforts aim to create a synergistic relationship that leverages the unique advantages of both SOEs and private enterprises.
Since the launch of the action to deepen and upgrade SOE reforms, centrally-administered SOEs have engaged in equity cooperation with private enterprises and other social capital, amassing funds of over 390 billion yuan (approximately $55.7 billion). This significant investment underscores China’s commitment to integrating diverse capital sources to fuel economic development.
Additionally, central SOEs have initiated cooperation activities across industrial chains with upstream and downstream enterprises, promoting the collaborative growth of more than 5,700 business entities. This has created a ripple effect throughout the economy, benefiting a vast network of enterprises.
Notably, among the over 2 million enterprises in the upstream and downstream supply chains directly influenced by central SOEs, a remarkable 96 percent are private small and medium-sized enterprises (SMEs). This highlights the pivotal role of SMEs in China’s supply chains and the broader economy.
Looking ahead, Lin highlighted that China will encourage SOEs to expand the open sharing of innovation resources. “We will fully leverage the resource advantages of SOEs, private enterprises, and other types of enterprises to achieve common development,” Lin said. This approach aims to harness collective strengths, drive technological innovation, and promote sustainable economic growth.
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China to improve cooperation between SOEs and private enterprises
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