Dissecting the Pillars of China’s Economy: The Role, Governance and Diversity of State-Owned Enterprises

Kasper Ingeman Beck

Chapter 2 in Business and Policy Challenges of Global Uncertainty:European Perspectives, 2025, pp 19-47 from World Scientific Publishing Co. Pte. Ltd.

Abstract: State-owned enterprises (SOEs) are a dominant force in China’s economy, representing over 60% of infrastructure investments and holding more than 38% of industrial fixed assets. With over 173,000 SOEs, there is considerable diversity in ownership across different government levels and regions, reflecting varying development levels, sector compositions and government–business relations. Many of these SOEs have their origins in former ministries and bureaus, maintaining deep integration within the state’s governance structure. Their operations are driven by both profitability and policy objectives. Notably, 27 out of China’s top 30 enterprises are state-owned. SOEs and state-owned capital funds are central to achieving China’s innovation goals and establishing dominance in new industrial sectors. An understanding of their political-economic functions, administrative classifications, ownership structures, personnel governance, size, performance, sector concentration and regional variations offers insight into the enduring significance and multifaceted role of SOEs in China’s economic landscape.

Keywords: Business Ecosystems; China; Corporate Diplomacy; Deglobalization; Data Regulation; Economic Sanctions; EU Chips Act; India; Money Laundering; Microchips; Multinational Enterprise; Public Responses; The European Automotive Industry; The Global Chip Industry; The Global Shipping Industry; Transnational Management; Uncertainty (search for similar items in EconPapers)
JEL-codes: F2 F23 F5 (search for similar items in EconPapers)
Date: 2025
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