In the news: SOEs big but not strong, ban on new government buildings and AstraZeneca employee questioned

| BY

clpstaff &clp articles

As 85 Chinese corporations make the Fortune Global 500 list, many are wondering how much power state-owned enterprises actually have. The government has stepped up its corruption crackdown and AstraZeneca has visited by the authorities amid the GSK bribery investigations

Promulgated: 2013-07-18

SOEs are big - but not strong

Caixin reported that 85 Chinese corporations made the latest Fortune Global 500 list. About 90% of those companies are state-owned enterprises (SOEs) and only seven are private businesses. The article argues that SOEs tend to be big, but not strong, as their profitability is lower than the average company in the top 500. In addition, SOEs are often structurally inefficient because of their size and, without state subsidies, it would be hard for them keep their balance sheets looking healthy.

Source: Caixin

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]