News Analysis
Beijing’s consolidation of state-owned enterprises is picking up speed in its final stages. Experts say that this is a step backward and that the inefficient mega-state enterprises will only add to China’s economic decline.
On Oct. 31, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) held a restructuring contract signing ceremony with 20 large enterprises, including China National Cereals, Oils and Foodstuffs Corporation (COFCO) and China Baowu Steel Group. Those central enterprises will eventually be integrated into 11 groups, according to the Party’s official media outlet, Xinhua.
A similar move took place on July 12, when 23 central enterprises were merged into 13 groups of integration projects spanning digital technology, energy equipment, supply chain services, and other fields, accounting for about a quarter of the enterprises supervised by SASAC….