What is a state-owned enterprise and what is a central enterprise?

State-owned enterprises refer to the state's ownership or control over its capital, and 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.

Central enterprises (hereinafter referred to as "central enterprises") occupy a dominant position in major industries and key areas related to national security and the lifeline of the national economy, and are an important pillar of the national economy. According to the authority of state-owned assets management, 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).

Data expansion:

The difference between the two:

1. Central enterprises belong to state-owned enterprises.

State-owned enterprises refer to the abbreviation of enterprises owned by the whole people, while central enterprises refer to the abbreviation of enterprises directly under the central government. According to the state-owned assets management authority of China government, the state-owned enterprises in China are divided into central enterprises and local enterprises, so the central enterprises must be state-owned enterprises, but not necessarily state-owned enterprises.

2. Subordinate units are different.

Central enterprises are different from subordinate units of state-owned enterprises. Central enterprises are directly managed by the State-owned Assets Supervision and Administration Commission, and some heads of central enterprises are appointed by the Central Organization Department. Generally, state-owned enterprises are under the jurisdiction of local governments, while central enterprises are under the management of other central ministries and commissions. Simply put, different status is like the difference between a minister and a mayor.

3. The scale of enterprises is different.

Most central enterprises are super-large enterprises. Looking at the top 500 enterprises in China, more than 85% of the listed state-owned enterprises are central enterprises with large scale, great leadership and good employee welfare.

4. The future development will be different.

In the future, central enterprises will define their main business and basically become leading enterprises in the industry, which is promising. However, state-owned enterprises may not develop as fast as central enterprises because of their different support.

5. Different economic values

State-owned enterprises are the pillars of our national economy. At present, the contribution rate of state-owned economy to GDP is around 30%. Enterprises owned by the whole people in the true sense of central enterprises are the pillars of the national economy.

References:

Baidu encyclopedia: state-owned enterprises

Baidu Encyclopedia: Central Enterprises