Skip to content

Central Government Owned Enterprises Only Submit a Tiny Portion of Their Profits to the Government

On May 14, 2012, Study Times, the publication of the Party School of the Central Committee of the Chinese Communist Party, reprinted an article originally published on March 25, 2012, in Southern Metropolis Daily. The article questioned the whereabouts of the huge profits that the enterprises that China’s central government owns have earned.

According to the article, at the start of 2012, the central government owned 963 enterprises, a few more than last year. In 2011, the net profit from these enterprises was 852.27 billion yuan (US$134.9 billion). However, they only submitted 75.736 billion yuan of their profits to the government and project they will only submit 82.3 billion yuan in 2012. That means that each central government owned enterprise submits less than 100 million yuan per year to the government. Yet even the Agricultural Bank, one of the least profitable central government owned enterprises in China, made 300 million yuan per day. The article concluded with a question: “We would like to ask these central government owned enterprises: ‘Where do your profits go?’”

Source: Study Times, May 14, 2012