Is the subsidiary controlled by state-owned enterprises a state-owned enterprise? Do employees enjoy national treatment?
State-owned enterprises have a certain administrative nature. Due to historical reasons, the classification of state-owned enterprises is quite complicated. For the state-owned enterprises in China, those who invest or hold more than 50% of the state-owned assets are state-owned enterprises. According to the authority of state-owned assets management, state-owned enterprises are divided into central enterprises (state-owned enterprises supervised and managed by the central government) and local enterprises (state-owned enterprises supervised and managed by local governments). Individual central enterprises have a special responsibility in the process of national social and economic development, which belongs to the direct management of the State Council, and these central enterprises belong to the ministerial level. To put it simply, there are three kinds of subordinate units of state-owned enterprises: one is a wholly-owned subsidiary, which must be a state-owned enterprise, the other is a state-owned enterprise that controls more than 50% of the shares, or the largest controlling party, which is called a holding state-owned enterprise or an absolute holding state-owned enterprise. Three types of enterprises have some shares, some of which are even less than 10%, and are called state-owned joint-stock enterprises. Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.