Chinese private sector profits outstripped by SOEs

China’s state-owned enterprises have overtaken the private sector in profits during the first part of this year, as regulatory clampdowns, soaring costs and liquidity crises hamstring private businesses, reports Nikkei.

Large state-owned industrial companies logged RMB 1.77 trillion ($275 billion) in total profits for the first eight months of 2021, up 87% year-on-year, compared with a 34% rise to RMB 1.64 trillion for their private counterparts.

The “industrial” category covers companies in manufacturing, mining and similar industries with more than RMB 20 million in annual revenue from their main operations. If the trends continue, the state sector could beat the private sector in full-year profits for the first time since the global financial crisis of 2008.