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The government will focus on improving the efficiency of resource allocation, says SASAC
China will accelerate the strategic reorganization of its centrally managed state enterprises to raise state capital in key industries that are vital to national security and the economy, during the period of the XIV Five-Year Plan (2021-25), a senior government official said. he said Tuesday.
The government will focus on improving the efficiency of resource allocation through the transfer of bonuses, acquisitions and joint-stock cooperation during the reorganization process, to solve problems such as fierce competition and homogeneous development, said Peng Huagang, secretary general. of State Assets. Supervision and Administration Commission of the State Council.
The official said that the overseas plans of central state-owned enterprises and cross-border mergers and acquisitions should focus on coordinated development and promote orderly reorganization, integration and cross-industry cooperation among central state enterprises, enterprises controlled by the State and private and foreign companies in accordance with the principles. of commodification over the next five years.
The net profit of China’s centrally managed state-owned enterprises reached 204.63 billion yuan ($ 30.68 billion) in September, reaching its highest level during this period. Net profit increased in double digits for three consecutive months, according to the latest data released by SASAC.
Due to the COVID-19 pandemic, the total operating income of central state-owned enterprises fell 4.6 percent annually to 21.1 trillion yuan in the first three quarters of this year, while net profit fell by 13. , 6 percent to 913.35 billion yuan.
As the total operating income of the central SOEs increased by 1.5 percent annually between July and September, and the profit decline quickly declined from 37.7 percent in the first half to 13.6 percent in the first three quarters, Peng said these figures will remain a strong foundation for central state-owned enterprises to achieve their annual goals, despite continued challenges due to the COVID-19 epidemic.
He said investment in fixed assets grew at a record pace this year, as central state-owned enterprises obtained 1.8 trillion yuan of investment in the first three quarters, an increase of 11.3 percent annually. The investment was used primarily for the coordinated development of industrial and supply chains, oil and gas exploration and stimulus packages for Hubei province.
Central state-owned enterprises invested more than 250 billion yuan in “new infrastructure” projects, mainly in 5G, smart energy and Internet-related manufacturing businesses from January to September. The country’s big three telcos, namely China Unicom, China Mobile and China Telecom, have already completed construction work on the 5G base stations ahead of schedule this year.
Backed by China’s advantage of having the world’s most comprehensive industrial system with the most diversified sectors, Peng said the government will continue to encourage core state-owned enterprises in the manufacturing sector to boost the nation’s foreign trade and deliver products on time to foreign customers.
Aviation Industry Corp of China Ltd, or AVIC, exported the Xinzhou-600 aircraft, China’s first new-generation local short-haul passenger aircraft to an African country late last month. The plane took off from Kunming Changshui International Airport in southwest China’s Yunnan Province on September 27 bound for Benin.
With a flight distance of more than 13,600 kilometers, the aircraft transited through Bangladesh, India, Pakistan, the United Arab Emirates, Saudi Arabia, Ethiopia, Rwanda, the Democratic Republic of the Congo and Cameroon, before finally arriving at the Cotonou airport in Benin after five-day trip.
It is the first of its kind to be delivered by AVIC XAC Commercial Aircraft Co Ltd, a subsidiary of AVIC, since the outbreak of the COVID-19 epidemic, said Zhang Yong, deputy general manager of AVIC XAC, based in Shaanxi province. .
To ensure delivery on time, Zhang said the company made rigorous plans to train the buyer in product inspection and in-flight procedures. The aircraft also passed the airworthiness inspection of the Civil Aviation Administration of China.
