After years of continuous restructuring and integration, there are 128 central enterprises in China. According to the property rights and control subjects, central enterprises can be roughly divided into three categories. Industrial central enterprises, financial central enterprises and central enterprises managed by other departments. The State-owned Assets Supervision and Administration Commission (SASAC) of the State Council mainly performs the investor's duties on behalf of SASAAC, which is generally called the central enterprise.
Central enterprises have three main characteristics. First, the financial relationship of assets is listed separately in the Ministry of Finance. Second, personnel relations are listed separately in Ministry of Human Resources and Social Security, and third, business is listed separately in the national plan. In the mid-1990s, the operation of state-owned enterprises was bleak, and more than two thirds of them were at a loss. Starting from 1997, in order to extricate state-owned enterprises from difficulties in three years, the state not only requires reform in the field of state-owned enterprises, but also introduces a number of supporting measures to shed burdens for state-owned enterprises.
Central enterprises:
Central enterprise is the abbreviation of central management enterprise, which means that the central people's government or state-owned assets supervision and administration institution is entrusted to exercise the responsibilities of investor. The leading group is a wholly state-owned or state-controlled enterprise directly managed by the central government or entrusted by the Central Organization Department, the State Council SASAC and other central ministries.
Central enterprises occupy a dominant position in major industries and key areas related to national security and the lifeline of the national economy, and are an important pillar of the national economy. According to the authority of state-owned assets management, state-owned enterprises are divided into central enterprises and local enterprises. In addition to the broad and narrow definitions of central enterprises, the responsibility of individual central enterprises in the process of national social and economic development is more special. These central enterprises are directly managed by the State Council and belong to the ministerial level.