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Central firms' growth not tied to monopoly profits

0 Comment(s)Print E-mail Xinhua, February 22, 2012
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A real estate billboard in China, which writes 'The central firm is coming!'. [File photo]

A real estate billboard in China, which writes "The central firm is coming!". [File photo]

The steady growth of China's central enterprises in 2011 did not result from their monopoly on the market, the Economic Daily reported Tuesday, citing Shao Ning, vice director of State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

Efficient reforms and innovations were the real driving forces when central firms from China faced tricky economic challenges in 2011, he said.

In 2011, the central enterprises took a lead in industry upgrades and transformations by encouraging mergers and consolidations among state-owned assets and enhancing cooperation with local companies and private firms in a bid to optimise the distribution of national resources.

The central firms of China turned over a total of 20.2 trillion yuan ($3.2 trillion) and a net profit of 917.33 billion yuan in 2011, up 20.8 percent and 6.4 percent respectively year-on-year, the report said.

They also made active contributions to government revenues. In 2011, the central enterprises handed in taxes of 1.7 trillion yuan to the public purse, attaining a year-on-year growth of 19.7 percent.

Taxes paid by the central firms have totalled 8.19 trillion yuan since the birth of SASAC in 2003, the report said.

But in terms of corporate management, the gap between China's central enterprises and the foreign multinationals remains huge despite their growing international competitiveness, said Shao.

Shao also emphasized the importance of deep cooperation between the leading central enterprises and the small and medium-sized firms to earn a competitive edge over international companies.

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