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State-owned enterprises (SOEs) are legal entities that undertake commercial activities on behalf of an owner, which is the government of the country where the firm is based and operates. In China, they contribute 60 per cent of gross domestic product, 80 per cent of urban employment and provide 90 per cent of new jobs. Critics say SOEs distort markets and do not allow for a level playing field for overseas companies. Beijing’s subsidies for its SOEs have been one of the major roadblocks to progress in negotiations in the US-China trade war.
The pain of this colossal corporate failure will be worth it if the country can diversify its growth strategy away from the addiction of property development.
Despite its role in supporting China’s economic boom, private capital still carries a whiff of notoriety in the country.
The Chinese government’s official policies recognise the private sector’s role in national development, yet there is still some bias against this part of the economy.
Fast-changing Saudi Arabia is eager for foreign capital, including from Hong Kong. The city should now reach out to its citizens in the Middle East who have the connections and know-how to build trust and spur investments.
In Beijing’s bid to realise ambitious economic growth goals for this year, steps are being taken to ensure local-level authorities are pulling their weight and not making matters worse for struggling businesses.
After Premier Li Qiang’s inaugural government work report, most observers are choosing a ‘wait-and-see’ approach to determine if the speech’s promises to foreign and private firms will manifest in specific policy prescriptions.
The move comes as the government calls on state-owned firms to embrace the use of AI in their businesses.
Washington’s report on China’s compliance in the World Trade Organization continues accusations since US-China trade war began, and Beijing says US is distracting from its own WTO ‘violations and sabotage’.
State media reports law aims to ‘implement equal treatment of state-owned and private enterprises’ but analysts predict no particularly innovative measures will come out of bill.
A murky business climate has left foreign firms wondering how much more they might become marginalised or eased out by the expanding state sector, and whether a more inward-facing China still wants their investments.
Once a license to print money, Chinese initial public offerings have been tarnished by opaque finances, scandals and Didi Global’s sudden NYSE delisting in 2022.
Small and micro-sized firms are considered vital to the health of China’s overall economy, and a new report offers suggestions for financial institutions and governments to empower growth and enhance resilience.
Challenges related to national security, data flows and market barriers still dominate hearts and minds, fuelling doubts about increasing investments in China, as well as contemplations about exploring overseas opportunities.
State-owned companies will dominate as the age of ‘fast leverage and fast growth’ is over, and developers face brutal years ahead, analysts said.
Huawei’s new smart car unit will cover smart car equipment manufacturing, AI system integration services, and AI software development, among other areas, according to records.
After a slew of promises made by the Chinese government to the country’s private businesses, growth and recovery have been weaker than expected – and experts are saying the solution to industry uncertainty is bold, consistent action in the sector’s favour.
Democrats on oversight committee release findings after multi-year investigation, accusing 2024 Republican front-runner of violating US Constitution.
Several of China’s major property developers have been delaying payments to small private suppliers or contractors – in direct contradiction to high-level instructions imploring their debts be settled promptly.
The bar has been raised for Chinese security firms – pushing them to become more internationalised and more commercialised to meet the growing need for protection overseas.
The commission administering China’s largest state firms has cautioned them to control and prevent risk in their financial subsidiaries and operations, a sign of heightened focus on systemic shortfalls as debt burdens continue to plague smaller institutions.
Private investment in China remained in contraction in the first 10 months of the year, with prominent economist Teng Tai saying new guiding theories are sorely needed.
Honor is bringing in a new chairman as part of efforts to pursue an initial public offering, according to a Chinese media report.
During a three-day tour of China’s northeast, a former centre of industry, Premier Li Qiang has placed seemingly deliberate focus on the country’s continuing efforts to break through bottlenecks.
It remains to be seen how much power the two-month-old division will wield as policymakers have failed to counteract the nation’s sluggish economic recovery and ongoing property crisis this year.
Parliament members ask if the companies will be excluded from the Global Gateway Business Advisory Board ‘within the context of de-risking from China’.
Xi Jinping spoke in favour of the continued presence of the state in strategic economic sectors, bolstering national security goals but likely crowding out private entities.
Boosting private investment and market confidence in China is of utmost importance to realising Beijing’s economic growth goals, but critics say transparency is still lacking.
Official obituary of former leader, who died in Shanghai on Friday, hails his contributions to the economy, belt and road, poverty relief and his support for President Xi Jinping.
Weak domestic consumption remains the “real worry” for China’s economic growth outlook, but there are encouraging signs that Beijing is serious about transitioning to a consumption-centred economy, according to investment guru Fang Fenglei.
Potentially embarrassing revelation for Brussels reported by Post comes amid bloc’s push to de-risk its fraught relationship with Beijing.
EU has launched Global Gateway as a belt-and-road alternative, but project’s advisers include EDP of Portugal, whose largest shareholder is China Three Gorges, a state-owned enterprise
“Curbs [from the United States] have inevitably impacted our supply chain, but at the same time it has also offered opportunities to develop our local industrial chain