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China has taken the unusual step of ordering its biggest state-owned enterprises to earn profits this year as the government increases its scrutiny of bloated businesses, according to people familiar with the matter.
The move represents the latest sign that the Communist Party is tightening its grip over the country’s $24 trillion SOE sector as President Xi Jinping calls for them to become "stronger, better and larger" in the next five years. The government has been seeking to overhaul SOEs for years to bolster the economy as state enterprises command about 40 percent of China’s industrial assets and create nearly 20 percent of urban employment.
Sasac didn’t immediately reply to a faxed query seeking comment. According to the regulator’s website, Sasac urged executives during last week’s gathering to uphold their allegiances to the party and transform their companies into globally competitive giants. The rule on making profits wasn’t mentioned.
Central SOEs are the ones managed by the central government. Including those managed by lower-tier municipalities, there are more than a hundred thousand SOEs across China.
https://www.bloomberg.com/news/articles/2018-02-26/what-an-extension-of-xi-s-reign-in-china-means-for-investors
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