Before 1978, state-owned and collectively-owned enterprises
represented 77.6 percent and 22.4 percent respectively of China's
exclusively public-ownership economy. The policy of reform and
opening-up has given wide scope to the common development of
various economic sectors. Individual and private industrial
enterprises and enterprises with foreign, Hong Kong, Macao or
Taiwan funding have mushroomed.
 |
Reform of state-owned enterprises has always been the key link of
China's economic restructuring. The Chinese government has made
various attempts to solve the problem of chronic extensive losses
in this sector and by now almost all state-owned enterprises have
adopted the company system. After being transformed into joint
stock companies, the economic benefit of the state-owned
enterprises increased steadily and their overall strength and
quality were remarkably enhanced, gaining continuously in their
control, influence and lead in the whole national economy. In 2005,
of the industrial added value created by all state-owned industrial
enterprises and non-state industrial enterprises with annual
turnover exceeding five million yuan, state-owned and state
stock-holding enterprises accounted for 39.2 percent,
collectively-owned enterprises 3.9 percent, the rest taken up by
other non-public enterprises, including enterprises with foreign,
Hong Kong, Macao or Taiwan investments, and individual and private
enterprises. The result is a dynamic juxtaposition of multifarious
economic elements.?
In 2005, of the Chinese enterprises ranking in the world's top 500,
the 15 China mainland enterprises were all state-owned. Of China's
own top 500 enterprises, the majority were state-owned and state
stock-holding enterprises, the main force of the Chinese economy,
with turnover amounting to 86 percent of GDP. Non-state enterprises
have become the main driving force for industrial sectors, the
non-state economy accounting for 50 percent in 27 of the 40
industrial sectors, more than 70 percent in some sectors.