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Sharp Increase in Profits of State-Owned Enterprises Challenged

Economists are concerned that the growth may not be sustainable, according to a panel discussion during a State TV program. Large State-owned enterprises saw a sharp increase in profits, according to Li Rongrong, Director of State-owned Assets Supervision and Administration Commission of the State council on April 19, 2009. In response, economists at the panel indicated that such growth was primarily fueled by preferential treatment and State monoply, thus its sustainability questionable. Others found it worrisome that 4,200 small to mid companies have been declining in contrast to the thriving large State-owned enterprises.

Source: China Central TV, April 24, 2009