News / Asia

China’s State Enterprises Pledge to Push Forward With Reform

The China Private Enterprise Pavilion is seen at night at the Shanghai World Expo Monday May 3, 2010 in Shanghai, China.
The China Private Enterprise Pavilion is seen at night at the Shanghai World Expo Monday May 3, 2010 in Shanghai, China.
William Ide
China’s state owned enterprises (SOEs) hit back at their critics on Friday, noting their contributions to the world’s second largest economy and pledging to continue efforts to push forward with reform.
 
SOEs as they are called are a frequent target of criticism. Their monopoly of key sectors of the Chinese economy limits competition, which critics say limits the potential of China’s development.
 
SOE chiefs, however, say the contributions they have made to the Chinese economy over the past decade are enormous and essential.
 
Wang Yong is secretary of the state-owned assets supervision and administration commission.
 
Speaking on the sidelines of China’s national party congress, Wang says that in different phases of development, all countries have seen larger state owned enterprises compared to private enterprises and foreign enterprises and that proportion is constantly adjusting.
 
He says that in the 1980s the proportion of state owned companies in European countries such as England, France, Norway and even the U.S. was also very high, around 20-30 percent.
 
China’s SOEs currently account for about 30-40 percent of the companies in the country, but control large sectors of the Chinese economy, particularly where most of the money is made.
 
Over the past decade, SOEs have seen their overall assets more than triple, and they readily note that their tax contributions to the government have increased dramatically as well.
 
Wang did not shy away, however, from admitting that SOEs have their challenges as well such as inefficiencies and other inherent problems.
 
Wang says SOEs are learning from international corporations and also China’s private companies as they try to transform themselves and be subjected more to the market. He says this will lead to them being better able to compete internationally with other private enterprises, improved performance, better results and profits.
 
Although the SOEs are increasing their listings on domestic and overseas stock markets, their close relationship with the government remains a flashpoint for controversy.
 
China’s top offshore oil and gas producer, CNOOC, is currently trying to push through the country’s largest foreign takeover. Earlier this year, CNOOC began a bid to purchase Canadian oil and shale gas company Nexen.

Last week, however, the Canadian government’s review of that bid was postponed for a month.

Wang Yilin, CNOOC chairman, says he was confident the deal would still go through.
 
Wang says that both CNOOC’s bid to purchase Nexen is a deal between two companies that are listed on the stock exchange, and the performance of these two companies is good. He went on to say that CNOOC has been listed on the Hong Kong stock exchange for 10 years and that its market operations have all been strictly regulated.
 
In his final speech to the National People’s Congress on Thursday, outgoing President Hu Jintao said China should continue to consolidate and develop its public sector and deepen reform of the country’s state-owned enterprises.

You May Like

India PM Modi's Party Distances Itself From Religious Conversions

BJP under fire for being slow to rein in hardline affiliate groups allegedly trying to promote Hindu-dominant agenda by luring Muslims and Christians to convert More

Anti-Whaling Group Found in Contempt of Court

Radical environmentalists who threw acid and smoke bombs at Japanese whalers in the waters off Antarctica continue their campaign to disrupt Japan's annual whale hunt More

UN's Ban Urges End to Discrimination Against Ebola Workers

Ban was speaking in Guinea on the second day of a whistle-stop tour aimed at thanking healthcare workers of the countries at the heart of the epidemic More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid