SOEs maintain strong momentum despite uncertainty

World
Europe

02:04

The escalating trade tensions have had some effect on China's state-owned enterprises (SOEs) but with controllable fallout, according to Weng Jieming, the deputy director at China's State-owned Assets Supervision and Administration Commission.

"State-owned enterprises have the resolution, ability, and confidence to maintain the economy's sustainable development,” Weng said, showing his confidence in the ability of SOEs to continue to flourish.

A set of figures testify his words. From January to April, the total revenue of the sector increased by 6.3 percent while the profit of the sector increased by 13 percent. Manufacturing achieved a 13.6 percent jump in profit, accounting for 57 percent of all increased profit of SOEs.

Weng Jieming, the deputy director at China's State-owned Assets Supervision and Administration Commission, speaks to CGTN. /CGTN Photo

“So the scale of increase doubled when we compare profit and revenue. This manifests the characteristics of high-quality development,” the deputy director said, adding that the foundation for stable development has been strengthened.

Meanwhile, SOEs have completed an investment in fixed assets of 547 billion yuan (79.1 billion U.S. dollars), up 10.8 percent year on year. “The increase shows that the whole sector is confident for future development,” Weng said.

“We have persisted on going our own way, despite how wind blows and waves beat in the outer environment. With a modern management system with Chinese characteristics, SOEs can keep vigor and raise their competitiveness,” he stated.

Moreover, Weng regarded the trend of globalization as irreversible, revealing that the SOEs would strengthen cooperation with other countries and regions through the Belt and Road Initiative and other mechanisms in the future.