What does state-owned enterprise mean?

State-owned enterprises

State-owned enterprises refer to the state having ownership or control over its capital. The will and interests of the government determine the behavior of state-owned enterprises. State-owned enterprises are the backbone of national economic development and the pillar of socialism with Chinese characteristics.

As a form of production and operation organization, state-owned enterprises have both commercial and public welfare characteristics. Their commercial nature is reflected in the pursuit of value preservation and appreciation of state-owned assets, and their public welfare nature is reflected in the usual establishment of state-owned enterprises. It is to achieve the country's goal of regulating the economy and play a role in coordinating the development of all aspects of the national economy.

According to the division of state-owned assets management authority, 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 special responsibilities in the country's social and economic development and are under the direct management of the State Council. These central enterprises are at the ministerial level. Extended information:

In different countries, different systems and different historical periods, countries around the world have very different definitions of state-owned enterprises. Our country’s state-owned enterprises, that is, the government, are defined according to their control rights and business objectives. Enterprises that can exercise effective direct or indirect control over them (to exercise control legally, it must first be reflected in ownership) and have commercial or non-commercial goals can be defined as state-owned enterprises, including state-controlled joint-stock enterprises. It is what is usually called a state-owned enterprise, that is, a state-owned enterprise.

A state-owned enterprise has the basic characteristics of an enterprise:

(1) It is engaged in production and business activities;

(2) It is an organization composed of a majority of people ;

(3) It is established in accordance with the law, and the law confirms its certain rights and obligations.

A state-owned enterprise is a special enterprise whose capital is invested entirely or mainly by the state, and all its capital or major shares are owned by the state. This is different from other enterprises that are fully or mainly invested by civil society (organizations and individuals).

Reference: Baidu Encyclopedia-State-owned Enterprises