China’s biggest 97 industrial conglomerates, known as the country’s national champions, have been asked to play their part as “stabilizers” in the economy, in a bid to offset the trade war with the United States by boosting their profits by 9% this year, said the South China Morning Post.
The State-owned Asset Supervision and Administration Commission (SASAC) set the target for the enterprises, which include state-owned oil and electric companies, with China’s overall industrial profits shrinking and economy slowing.
Twenty of the 97 state enterprises, which have monopoly positions in specific industries, including the China Aerospace Science and Technology Corporation, China National Petroleum Corporation and State Grid Corporation of China, are required to achieve a 12% profit growth this year, according to the Economic Observer.
The move highlights a reliance on large state-owned firms despite calls from China’s trading major partners, including the US and European Union, to reduce the role of state companies in economic activities.
You must log in to post a comment.