Central state-owned enterprises, state-owned enterprises, and grade distinctions

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Central state-owned enterprises, state-owned enterprises, and grade distinctions: I. The difference between state-owned enterprises and central state-owned enterprises. These two concepts overlap; starting with state-owned enterprises, they are enterprises established as investment entities. In the past, they were classified according to their affiliation to various central ministries – those belonging to such ministries are called central state-owned enterprises. Examples include China Southern Airlines and China Eastern Airlines, as well as companies under the Ministry of Ordnance Industry such as aircraft manufacturing firms. Those that are local are called local enterprises, such as the state-owned ×× City Machine Tool Factory. There are also collective enterprises; the investors in these enterprises are not the government, but rather a specific group – for example, a collective enterprise established by a large factory, or one set up by a neighborhood to provide employment for surplus workers, or encore enterprises founded by village communities. In terms of hierarchical structure, central state-owned enterprises are under the management of relevant ministries and commissions; provincial and municipal state-owned enterprises are managed by the industrial bureaus of those respective provinces and municipalities, while collective enterprises are overseen by their sponsoring organizations. In our country, based on the purpose of state-owned assets, they can be divided into operational assets and non-operational assets. Among operational assets, based on **’s management authority, they can be divided into central enterprises and local enterprises. Broadly speaking, central state-owned enterprises fall into three categories: the first category consists of enterprises managed by the State-owned Assets Supervision and Administration Commission of the State Council; from an economic perspective, these enterprises provide public goods, such as those in the military and telecommunications sectors ； Those that provide natural monopoly goods, such as oil ； Those that offer competitive products, such as general industry, construction, and trade. Second, those enterprises managed by the China Banking Regulatory Commission, the China Insurance Regulatory Commission, and ** fall under the financial industry. Third are enterprises managed by other departments of the State Council or mass organizations, and they operate in industries such as tobacco, gold, railway passenger and freight transport, ports, airports, broadcasting, television, culture, and publishing. II. Public institutions Public institutions refer to social organizations that rely on financial subsidies and are aimed at serving the public interest. In the past, it was difficult to distinguish state-owned enterprises from public institutions. However, amid the trends of the market economy, **through equity reforms that brought state-owned enterprises into the market, these enterprises began to pursue surplus value as their goal, rather than focusing solely on meeting production needs**. Simply put, apart from receiving **policy protection, state-owned enterprises fall within the broader category of corporate entities. III. The transformation of state-owned enterprises: In the past, state-owned enterprises were a term used to refer to entities that relied on taxes paid by the entire population to support certain groups of people. Today’s state-owned enterprises are essentially a term used to describe places where several wealthy and powerful Chinese individuals (mainly those with power) pool their money together, using this as a lure to steal money from the people across the country (i.e., stock investors). IV. The fundamental difference between central state-owned enterprises and ordinary state-owned enterprises lies in the following: 1. Central state-owned enterprises and ordinary state-owned enterprises have different supervising authorities; they are under the direct management of the State-owned Assets Supervision and Administration Commission, and some officials in charge of central state-owned enterprises are appointed by the Organization Department of the CPC Central Committee ； Generally, state-owned enterprises are either under the jurisdiction of local authorities or fall under other central ministries. Simply put, their statuses are different, just like the difference between a minister and a mayor. 2. Central state-owned enterprises are mostly very large-scale companies; looking at China’s top 500 companies, over 85% of those that are state-owned enterprises are central state-owned enterprises. With such large scale, their leaders have considerable power, and it is likely that employees enjoy good benefits as well. 3. Central state-owned enterprises are truly enterprises owned by the entire people, and they serve as the pillars of the national economy. 4. In the coming period, central state-owned enterprises will define their core business areas clearly and will essentially become leading players in their respective industries, holding great potential. V. The administrative rank of CEOs of central state-owned enterprises: As is well known, the general manager of China Southern Airlines Group holds a ministerial rank ； The president of a joint-stock company is a vice minister, and the deputy general manager of a group is also a vice minister. So what are the respective ranks for the senior vice president and vice president of a joint stock company? Is it at the deputy ministry level or ministry level? China Southern Airlines operates as a joint-stock company through an internal integrated listing mechanism; therefore, the level of the joint-stock company is determined entirely by the parent group company, which can appoint a ministerial-level official as president, or someone at the vice-ministerial or departmental level. Generally speaking, the listed part of a group company and the head office of the group company should operate in the same location; in other words, it’s one team under two different names. The president of the joint-stock company is usually also held by the group company’s first vice president or executive vice president. Although they hold the title of vice-ministerial level, they may enjoy the same treatment as the group’s general manager within the group. Similarly, vice presidents of a joint-stock company, regardless of any other positions they hold within the group company, can enjoy the same treatment as the group’s deputy general managers. Among the more than 100 central enterprises under the State-owned Assets Supervision and Administration Commission, the majority of their executives hold positions at the department or bureau level. There are not many enterprises at the vice-ministerial level. Even CITIC Group, which is at the ministerial level, is not under the jurisdiction of the SASAC. In fact, there are very few current party secretaries, chairpersons, and general managers of state-owned enterprises who hold ministerial rank; they are usually at the vice-ministerial or departmental level. CITIC Group’s situation is unclear, but the top leaders of China Southern Airlines all hold vice-ministerial rank. One cannot assume that such positions are still at the ministerial level just because a former leader held that rank in the past, or because the organization originated as a ministry-level entity! Personally, I think the bosses of many very large enterprises enjoy treatment at the ministerial level despite holding deputy-ministerial positions. Because the bosses of many companies are cadres under central government supervision. There are not many officials at the department-level among those under central management. Of course, not all state-owned enterprises are under the jurisdiction of the SASAC. Those few communication monopoly companies are at the vice-ministerial level, so there shouldn’t be any problems. Of course, the document is what ultimately counts. Moreover, the economic benefits enjoyed by the heads of state-owned enterprises should be considerably higher than those of ministry ministers. The more than 100 large state-owned enterprises under the supervision of the State-owned Assets Supervision and Administration Commission are key enterprises that are vital to China’s economic development and people’s well-being. But that doesn’t mean the rank is very high; it’s still just a regular director. Complete list of 151 central state-owned enterprises:
Serial Number | Enterprise (Group) Name
1 | China National Nuclear Corporation
2 | China National Nuclear Construction Group Corporation
3 | China Aerospace Science and Technology Corporation
4 | China Aerospace Science and Industry Corporation
5 | AVIC First Group Corporation
6 | AVIC Second Group Corporation
7 | China State Shipbuilding Corporation
8 | China State Shipbuilding Industry Corporation
9 | China North Industries Group Corporation
10 | China North Industries Group Corporation
11 | China Electronics Technology Group Corporation
12 | China National Petroleum Corporation
13 | Sinopec Corporation
14 | China National Offshore Oil Corporation
15 | **Power Grid Companies**
16 | China Southern Power Grid Co., Ltd.
17 | China Huaneng Group Corporation
18 | China Datang Corporation
19 | China Huadian Corporation
20 | China Guodian Corporation
21 | China Power Investment Corporation
22 | China Three Gorges Corporation
23 | Shenhua Group Co., Ltd.
24 | China Telecom Corporation
25 | China Network Communications Group Corporation
26 | China Unicom Limited
27 | China Mobile Communications Group Corporation
28 | China Electronics Corporation
29 | China FAW Group Corporation
30 | Dongfeng Motor Corporation
31 | China National First Heavy Machinery Group Corporation
32 | China National Second Heavy Machinery Group Corporation
33 | Harbin Electric Equipment Group Corporation
34 | China Dongfang Electric Corporation
35 | Anshan Iron and Steel Group Corporation
36 | Baosteel Group Co., Ltd.
37 | Wuhan Iron and Steel (Group) Corporation
38 | Chinalco Corporation
39 | China Ocean Shipping (Group) Corporation
40 | China National Marine Transportation Corporation
41 | China National Aviation Corporation
42 | China Eastern Air Holding Company
43 | China Southern Air Holding Company
44 | Sinochem Group Corporation
45 | COFCO Group Corporation
46 | China Minmetals Corporation
47 | China General Technology Group Holding Co., Ltd.
48 | China State Construction Engineering Corporation
49 | China National Grain Reserves Administration
50 | **Development and Investment Companies**
51 | China Merchants Group Co., Ltd.
52 | China Resources Group Co., Ltd.
53 | China State Travel Service Group Corporation
54 | **Nuclear Power Technology Companies**
55 | China Energy Conservation Investment Corporation
56 | China High-Tech Investment Group Corporation
57 | China International Engineering Consulting Corporation
58 | China National Packaging Corporation
59 | China Business Group Corporation
60 | China Huafu Trade Development Group Corporation
61 | China Chengtong Holdings Company
62 | China Huaxing Group Corporation
63 | China National Coal Energy Group Corporation
64 | China Coal Research Institute
65 | China National Machinery Industry Corporation
66 | China Academy of Mechanical Sciences
67 | China Agricultural Mechanization Research Institute
68 | China National Iron and Steel Group Corporation
69 | China Metallurgical Science and Technology Group Corporation
70 | China Iron and Steel Research Institute
71 | Sinochem Corporation
72 | China Chemical Engineering Corporation
73 | China National Light Industry Corporation
74 | China National Light Industry Foreign Economic and Technical Cooperation Company
75 | China National Arts and Crafts Group Corporation
76 | China National Salt Industry Corporation
77 | Huacheng Investment Management Co., Ltd.
78 | China Hengtian Group Corporation
79 | China National Textile and Apparel Research Institute
80 | China National Building Materials Group Corporation
81 | China Nonferrous Metals Mining Group Corporation
82 | Beijing Nonferrous Metals Research Institute
83 | Beijing Institute of Mining and Metallurgy
84 | China International Technical and Intellectual Cooperation Company
85 | China Far East International Trade Corporation
86 | China International Enterprise Cooperation Company
87 | China Real Estate Development Group Corporation
88 | China Academy of Building Research
89 | China Northern Locomotive and Rolling Stock Industry Group Corporation
90 | China Southern Locomotive and Rolling Stock Industry Group Corporation
91 | China Railway Communication and Signaling Group Corporation
92 | China Railway Engineering Group Corporation
93 | China Railway Construction Corporation
94 | China Communications Construction Group Corporation
95 | China Communications Construction Group Corporation
96 | China Putian Information Industry Group Corporation
97 | China Posts and Telecommunications Equipment Group Corporation
98 | China Satellite Communications Group Corporation
99 | Institute of Telecommunication Science and Technology
100 | China Water Resources Investment Group Corporation
101 | China Agriculture Development Group Corporation
102 | China State Farm Reclamation Group Corporation
103 | China National Textiles Group Corporation
104 | China National Foreign Trade and Transportation (Group) Corporation
105 | China National Silk Import and Export Corporation
106 | China National Light Industrial Products Import and Export Corporation
107 | China National Complete Set of Equipment Import and Export (Group) Corporation
108 | China Overseas Service Group Corporation
109 | China Biotechnology Group Corporation
110 | China National Audio-Video Publishing Group Corporation
111 | China National Forestry Group Corporation
112 | China National Pharmaceutical Group Corporation
113 | China National Tourism Group Corporation
114 | China Xinxing (Group) Corporation
115 | China Poly Group Corporation
116 | China New Era Holding (Group) Company
117 | Zhuhai Zhenrong Company
118 | China Academy of Building Design
119 | China Electronic Engineering Design Institute
120 | China National Coal International Engineering Design and Research Institute
121 | China Haicheng International Engineering Investment Institute
122 | China Metallurgical Geology Bureau
123 | China Coal Geology Bureau
124 | Xinxing Pipe Group Co., Ltd.
125 | China Civil Aviation Information Group Corporation
126 | China Aviation Fuel Group Corporation
127 | China Aviation Equipment Import and Export Group Corporation
128 | China Power Engineering Consulting Group Corporation
129 | China Hydropower Engineering Consulting Group Corporation
130 | China Water Resources and Hydropower Construction Group Corporation
131 | China National Gold Group Corporation
132 | China National Cotton Reserves Administration
133 | China National Printing Group Corporation
134 | Panzhihua Iron and Steel (Group) Corporation
135 | Shandong Central Metallurgical Mining Group Corporation
136 | Changsha Institute of Mining and Metallurgy
137 | China Lucky Film Group Corporation
138 | China Guangdong Nuclear Power Group Co., Ltd.
139 | China Yangtze River Shipping (Group) Corporation
140 | Shanghai Institute of Ship Transport Science
141 | China National Record Corporation
142 | Shanghai Bell Alcatel Co., Ltd.
143 | Rainbow Group Corporation
144 | Wuhan Institute of Posts and Telecommunications Science
145 | Shanghai Institute of Pharmaceutical Industry
146 | OCT Group Corporation
147 | Nanguang (Group) Co., Ltd.
148 | Xi’an Electric Machinery Manufacturing Company
149 | China Gezhouba Group Corporation
150 | China TieTong Group Co., Ltd.
151 | China National Railway Materials Corporation

The first 53 enterprises on this list are at the ministerial, vice-ministerial level, or have status equivalent to that of vice ministers; the rest are at or below the departmental level. CNPC, Sinopec, as well as the military-related enterprises mentioned earlier, and the China National Nuclear Corporation are all at the ministerial level. The heads of the first 53 enterprises under the Central State-owned Enterprises Administration, which are managed by Bureau 1 of the SASAC, are officials supervised by the Central Organization Department (at least at the deputy ministerial level or above); the remaining enterprises are managed by Bureau 2, and their leaders are appointed by the SASAC (including China Railway and China Railway Construction, which were previously deputy-ministerial-level units under the Ministry of Railways). According to the Party’s regulations regarding the management of officials, their rank can go up to the director level at most.