What is the China Central State-Owned Enterprises: Latest Central SOEs Directory | 2024

Introduction:

In today’s globalized business environment, collaborations between foreign companies and Chinese enterprises are becoming increasingly frequent. However, due to the complexity of Chinese enterprises, particularly the differences between China State-Owned Enterprises (SOEs) and China Central State-Owned Enterprises (Central SOEs), many foreign business partners often find it challenging to accurately determine the type of Chinese company they are dealing with. Specifically, many Chinese companies often refer to themselves as Central SOEs (Chinese: 央企) or States SOEs (Chinese: 国企) in external communications, which further confuses foreign clients because they do not fully understand what these terms mean.

The challenge is further compounded by the fact that these Central SOEs often establish subsidiaries or joint ventures, making it even more difficult to ascertain their true background. Therefore, confirming whether the Chinese company you are collaborating with is genuinely a Central SOE becomes a critical issue in international business cooperation. Currently, China has 97 Central SOEs directly managed by the central government, and broadly speaking, including those managed by other central departments, the total number can reach 130. This article will delve into how to identify and confirm the nature of Central SOEs, providing practical guidance to help business partners make informed decisions in their collaborations.

The Core Significance of China Central State-Owned Enterprises

The origin of Central State-Owned Enterprises can be traced back to the early stages of China’s reform and opening-up. Among the earliest established Central SOEs was China National Petroleum Corporation (CNPC), which was officially formed in 1988. This marked the beginning of the central government’s concentrated management of key industries. Subsequently, with the continuous reform of China’s economic system, other significant state-owned enterprises in various sectors were gradually reorganized into Central SOEs, covering vital areas such as energy, telecommunications, finance, and infrastructure. Over decades of development, these Central SOEs have played a crucial role in China’s economy, growing stronger and gradually stepping onto the international stage. Today, there are 97 Central SOEs directly managed by the central government, and broadly speaking, including those managed by other central departments, there are 130 Central SOEs.

As of 2023, the number of state-owned enterprises (SOEs) in China is vast. According to public data, the total number of SOEs is estimated to be around 150,000. This includes various types of enterprises controlled by both the central and local governments. These enterprises are spread across the country, covering industries such as energy, finance, manufacturing, and telecommunications.

It is important to note that this figure includes both Central State-Owned Enterprises (Central SOEs) and local state-owned enterprises (Local SOEs). Central SOEs number approximately 97 (or 130 broadly), while local SOEs account for a larger portion, forming the bulk of the total SOEs. Simply put, Central SOEs are a subset of SOEs. They are part of SOEs but, due to being directly controlled by the central government, they occupy a higher tier and hold greater strategic significance within the SOE category.

Explaining the Legal Status of Central State-Owned Enterprises’ English Names

Currently, a common issue lies in the inconsistent English naming of Central State-Owned Enterprises:

The Legal Status of English Names: In China, the official name of an enterprise must be in Chinese, and the English name has no legal status. This means that English names cannot be used in official documents or legal matters, and they do not carry legal effect. This regulation has led to difficulties for foreign partners when verifying and referencing Chinese companies.

English Names of Private Enterprises: Private enterprises usually decide on their English names independently, primarily for international communication and business dealings. Due to the lack of standardized guidelines, the English name of a private enterprise may differ significantly from the translation of its Chinese name. This discrepancy can result in a significant difference between the English name and the company’s actual identity in international transactions.

English Names of State-Owned Enterprises: For State-Owned Enterprises, especially Central SOEs, their English names are typically standardized and strictly protected by relevant national departments. These English names are widely used in international business and must comply with national standards to ensure uniformity and authority in international affairs.

Resolving the Confusion Foreign Business Partners Have Regarding the English Names of Central SOEs

When foreign clients or companies prepare to collaborate with Chinese companies, accurately identifying the name of the counterpart becomes crucial. Especially when the English name of the company differs from its Chinese name, this can lead to confusion. So, how can this issue be resolved?

First, it is recommended to use reliable verification tools, such as GWBMA’s MANUAL COMPANY VERIFICATION REPORT or INSTANT AUTOMATED COMPANY REPORT. When using the MANUAL COMPANY VERIFICATION, the report, verified manually, will provide the accurate English name of the target company, ensuring that the information you receive is precisely validated. However, if you choose the INSTANT AUTOMATED REPORT, since the report is machine-generated and sent to you within 3 seconds via email, the company’s English name in the report may only be a formal translation, which may not necessarily match the English name actually used by the Chinese company. This discrepancy can lead to misunderstandings, especially in the rapid handling of international transactions.

This difference between the English and Chinese names arises because a single Chinese company name can be translated into multiple different English versions, and these translations may vary in different contexts. To resolve this inconsistency, it is crucial to rely on the unique Unified Social Credit Identifier (USCI) assigned to each registered enterprise in China. This identifier is the company’s sole identification number, and regardless of changes in the English name, the USCI remains the definitive means of verifying the company’s true identity. Therefore, in cases of name discrepancies, the USCI is your reliable tool for verifying the company’s identity.

This approach ensures that foreign business partners can accurately identify their Chinese counterparts, avoiding confusion or misunderstanding due to inconsistent name translations. By doing so, international cooperation can become more transparent and efficient.

Conclusion:

In today’s globalized world, understanding China’s Central State-Owned Enterprises (Central SOEs) is crucial for international business cooperation. Through this article, we have explored the definition, legal status, and methods to identify the true identity of Central SOEs. Particularly, when collaborating with Chinese companies, accurately identifying the company name is not only a matter of business trust but also a key factor in ensuring smooth cooperation. GWBMA emphasizes the use of the Unified Social Credit Identifier (USCI) as an effective tool for the final verification of a company’s identity, which not only resolves potential discrepancies between Chinese and English names but also provides greater transparency and reliability for international partners.

Below are the 97  Central SOEs. plus 33 additional enterprises, bringing the total to 130.