What are the state-owned and collective economies in China?

The public ownership economy includes not only the state-owned economy and the collective economy, but also the state-owned component and the collective component of the mixed ownership economy. The main position of public ownership is mainly reflected in: public assets in the total assets of society; state-owned economy to control the lifeblood of the national economy, the leading role in economic development. This is for the whole country; some places and industries may differ. The dominance of public assets, to have quantitative advantages, but also focus on qualitative improvement. The state-owned economy plays a leading role, mainly reflected in the control. As long as adhere to the public ownership as the main body, the state control of the national economic lifeline, the control and competitiveness of the state-owned economy has been enhanced, under this premise, the proportion of the state-owned economy to reduce some of the socialist nature of China will not be affected.

The Ministry of Finance recently released the final accounts of the enterprise financial accounting data show that in 2007, although the number of state-owned enterprises, but the efficiency of a substantial increase. As of the end of 2007, China's state-owned enterprises 112,000, a net decrease of 4,153 over the previous year, a reduction of 3.8%; total assets of state-owned enterprises (consolidated) 34.7 trillion yuan, an increase of 25.2%.

There was little change in the ownership structure of the top 500 Chinese enterprises in 2007, with the state-owned economy continuing to dominate the national economy. There are only 6 private and privately-held enterprises in the top 100 of China's top 500 enterprises, including Gome Electrical Appliances, Huawei Technologies, and Suning Appliances; and there are only 13 private and privately-held enterprises in the top 200.

The data show that, in 2007, there are 349 state-owned and state-controlled enterprises*** in the top 500 Chinese enterprises, accounting for 69.8% of the total number of enterprises; there are 89 private and privately-controlled enterprises, an increase of 2 over the previous year, accounting for 17.8% of the total number of enterprises, with a total operating income of 1.40 trillion yuan, accounting for 8% of the total number of enterprises.

Since the reform and opening up, a large number of new collective enterprises like Haier Group have emerged in China. Among them, there are listed companies developed through collective restructuring such as Chunlan, Dongbao Pharmaceuticals, Sanlu Dairy and Baoshuo Group, as well as large collective enterprises held by employees such as Shanghai Hwaseng Chemical and Shanghai New Industry Union.

The results of the first national economic census show that the composition of paid-in capital from various ownership contributors among enterprise corporations in the secondary and tertiary industries is as follows:

Ownership 2001 2004 Increase/Decrease

Trillion Yuan % Trillion Yuan % Trillion Yuan % Trillion Yuan %

State capital 7.5 54.4 8.7 48.1 + 1.2 - 6.3

Collective capital 1.5 11.3 1.4 7.9 - 0.1 - 3.4

Public capital 9.0 65.7 10.1 56.0 + 1.1 - 9.7

Taking the traditional collective enterprises as an example, the number of enterprises has been reduced by 48% since the reform, while the enterprises of diversified main bodies of investment are developing rapidly. Growth of 70%, according to 2000 statistics, more than 100 counties above the collective enterprises into joint-stock cooperative system, limited liability companies accounted for 78% of the total number of enterprises, and the formation of enterprise groups to implement the joint, mergers, leasing, contracting, Sino-foreign equity joint ventures, sales, partnerships, private, public private.

Reform and restructuring has promoted the new development of the collective economy. According to the National Bureau of Statistics, in 2000, compared with 1998, the size of the collective greatly reduced, while the average multi-family enterprise assets increased from 18.67 million yuan to 26.82 million yuan, an increase of 43.7%; speed up the pace of development of enterprises, in 2002, the national collective, industrial enterprises above designated size to achieve gross output value of 1,364.4 billion yuan, accounting for the proportion of the country's gross output value of 12.4%, the economic efficiency of enterprises has increased substantially. The economic efficiency of the enterprises has been greatly improved.

The so-called "Mixed Ownership Economy" refers to the new structure of property rights allocation and economic form formed by the diversified investment, mutual penetration, interconnection and integration of different property rights subjects in the same economic organization. It is aimed at the disadvantages of the traditional ownership structure and the problems existing in the transition, to adapt to the establishment of a perfect socialist market economic system and put forward.

Nanjing Sweet Group is a private high-tech enterprise established in August 1992, which is mainly engaged in IC design, information and communication, and the development and manufacture of new products and services. Mainly engaged in IC design, information and communication, multimedia information, power automation and other areas of product development, production and sales, is the national torch plan key high-tech enterprises. 2000 May, Sweet Group funded the merger and acquisition of "a steel isoform", to become a foreign private enterprise holding the state-owned listed companies in Shanghai, the zero breakthrough. In February 2002, Sweet merged with China Spinning Machinery and again participated in the restructuring of Shanghai's state-owned listed companies.　In October 2003, Sweet acquired a large state-owned listed company, Jiangsu Little Swan. Over the past few years, Sweet Group has been able to achieve rapid development by participating in the asset reorganization of state-owned enterprises and engaging in the practice of mixed-ownership reform, and in 2003, Sweet Group realized an operating income of 18.04 billion yuan and paid taxes of 220 million yuan, which were substantially higher than that of the previous year.