A wholly state-owned enterprise refers to an enterprise that is funded by the state, fully controlled and operated independently. In this enterprise form, the state owns 0/00% equity of the enterprise/kloc, and enjoys the highest decision-making power and control power. Wholly state-owned enterprises are usually directly managed and supervised by government agencies or state-owned assets management agencies at the national level.
Wholly state-owned enterprises exist in many countries, especially under the planned economy system. This enterprise form is usually used in national strategic industries, important infrastructure and public services, such as energy, transportation, telecommunications, banking and so on. Wholly state-owned enterprises can, to a certain extent, realize the state's control and regulation of the economy and safeguard the country's economic security and interests.
The characteristics of a wholly state-owned enterprise include: the ownership and control of the enterprise by the state; The direct supervision and intervention of the government on enterprises; Enterprise management decisions are influenced by government guidance and policies; Enterprises enjoy certain advantages and privileges in market competition; Corporate responsibility is not only the pursuit of economic benefits, but also the fulfillment of social responsibility.
It should be noted that wholly state-owned enterprises are not the enterprise forms adopted by all countries. Many countries have carried out market-oriented reforms, gradually reducing the number of wholly state-owned enterprises and encouraging the development of private economy.
A wholly state-owned enterprise refers to an enterprise wholly funded and controlled by the state, and its ownership belongs to the state. Such enterprises enjoy the special management and supervision power of the state in the course of operation. The characteristics of a wholly state-owned enterprise include: 1) the state is fully controlled and has absolute ownership; 2) The state has the right to intervene in the business decisions of enterprises; 3) Wholly state-owned enterprises undertake national responsibilities and serve national strategic objectives; 4) Wholly state-owned enterprises have certain advantages in market competition; 5) Wholly state-owned enterprises play an important role in some key industries and fields. These characteristics make wholly state-owned enterprises play an important role in safeguarding national interests, realizing social stability and economic development.
Legal basis:
Law of People's Republic of China (PRC) on State-owned Assets of Enterprises;
Chapter I General Provisions Article 5 The state-funded enterprises mentioned in this Law refer to wholly state-owned enterprises and wholly state-owned companies funded by the state, as well as state-owned capital holding companies and state-owned capital shareholding companies.