China’s state-owned enterprises help protect economy from foreign pressure and risks, says Communist Party economist
- US and EU have frequently complained that state firms enjoy an unfair competitive advantage but Wang Xiaoguang defends their role as a ‘buffer’ against international pressure
- Party School economist tells policy seminar that Beijing also values SOEs for fulfilling wider social responsibilities
China relies on its state-owned enterprises to help counter “international pressure and risks”, according to a leading Communist Party economist.
Wang Xiaoguang, deputy director of the economics department at the Central Committee’s Party School, argued that the businesses – which attract frequent complaints from the United States and Europe about unfair competition – are a valuable way of protecting the country’s economy at a time when the US is seeking to do down China.
“China has been emphasising the quality and influence of SOEs in recent years,” Wang told a seminar in Beijing on Wednesday.
“The new requirement is that SOEs should have strong capabilities in innovation and in withstanding risks. China relies on SOEs to buffer risks from home and abroad and stand guard for the economy.”
He also said it should be “achievable” for China’s gross domestic product to grow by 6 per cent next year “because China has a huge market and there is the capacity to increase investment”.