Key State-owned Enterprises Shore up China's Economy

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Last updated at: (Beijing Time) Wednesday, August 14, 2002

Key State-owned Enterprises Shore up China's Economy

According to sources from the State Economic and Trade Commission, key state-run enterprises have been in an excellent shape of development in China in the last three years.

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According to sources from the State Economic and Trade Commission, key state-run enterprises have been in an excellent shape of development in China in the last three years.

Credited with a 50 percent of profit gains from China's industries as in 2001, these had come to create an aggregate industrial output value of 2,178.3.3 billion yuan (in constant price) to show a 13 percent up over the preceding year. Meanwhile, an operating income of 3,865.73 billion yuan was netted, up 7.6 percent; export delivery reached a whole worth of 192.12 billion yuan, up 7.8 percent.

As told by these figures enumerated for their business income, asset increase and interest gains, China's key state enterprises have been at a higher growth rate than a world average of the world top 500. Hence greater competitive edge and raised ability to stave off risks and a weighty part by the country's key state enterprises in shoring up the country's economy.

As told by inside sources as "2001 State Key Enterprises Development Report" from the State Economic Information Center, 428 industrial undertakings or 83.6 percent of China's key state enterprises have been operating with a surplus, with profits adding up to a total of 244.39 billion yuan, 7.2 percent up. Those suffering from a loss number 84 or 16.4 percent of the total, being found mainly in chemical, electronics, machinery, light and textile sectors.

Key state enterprises claim an aggregate industrial economic performance index number of 128.9 to stand for a rate of 6.8 higher than national. Along with an annual per-capita amount of 19,000 yuan of higher industrial yield is an asset debt rate 5 percent less than national, interest gains 1.3 percent higher than national average and a higher marketing rate of 0.6 percent than national average have been recorded..

The Report pointed out that in the last three years though key state enterprises form a mere 0.3 percent of China's industrial total yet they have been credited with an operating income, interest earnings and an asset gain at a rate around 40, 50 and 60 percent respectively. Their role in shoring up the Chinese economy is obvious.

In 2001, key state enterprises achieved an asset profit growth of 6.2 percent or 6.2 percent higher over world top 500 average. Compared to a 54.1 percent interest drop by the world top 500, China's key state enterprises have been at a profit level of 2000, showing greeat potential for development. In 2001, six Chinese enterprises won a rising place on the list of the world top 500.

Meanwhile, enhanced efforts began to be made by the country's key state enterprises going in for development and research of new products in 2001. For an investment of 42.51 billion yuan made to that end, a 24.6 annual growth over the preceding year in output had been achieved, with a proportionate rise of 1.13 percent from 0.99 percent in interest gains expected on major production lines in 2002.

By People's Daily Online

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