What does central enterprise holding mean?

Central enterprise holding refers to a kind of enterprise directly controlled or controlled by the central government of China. These central enterprises occupy an important position in China's domestic economy and are the main operators of national strategic industries and important infrastructure. Holding by central enterprises means that central enterprises have the decision-making power in the target enterprises, and can directly participate in the operation and management of enterprises, so as to realize the direct control and guidance of the state on enterprises.

Another important significance of holding central enterprises is to provide strong support for the development of national strategic industries. Due to the close cooperation between enterprises under the control of central enterprises and China municipal government, we can make full use of government resources and policy advantages to promote the development of enterprises. Because of their resources and advantages, central enterprises can undertake large-scale key projects, including large-scale infrastructure, which provides a solid guarantee for the rapid development of the national economy.

However, there are also some problems and challenges in the holding of central enterprises. On the one hand, the holding of central enterprises may lead to unfair competition, and some private enterprises are difficult to compete with central enterprises, thus affecting the market competition mechanism; On the other hand, the holding of central enterprises may lead enterprises to rely too much on the government, resulting in distortion of policies and resources. Therefore, in practice, the government needs to strengthen supervision, open the market, improve the competition mechanism and other measures to restrain and standardize the holding of central enterprises.