Business · Economy · 3 hrs ago
China accelerates state-owned enterprise mergers and investment in new industries
China is accelerating reforms of state-owned companies through mergers and changes to where they invest.
In October, the newly formed National Data Group was launched in Xiongan, while several listed state-controlled companies disclosed merger and restructuring plans.
The reforms aim to focus state capital on key industries, including areas linked to national security and the economy’s core needs.
Since 2013, China’s State-owned Assets Supervision and Administration Commission has reorganized 52 central state-owned companies in 29 groups.
Central state firms invested 7.4 trillion yuan in emerging industries over three years, raising the share of their total investment going to those sectors from 27% to 42%.
The government’s plan sets a goal for emerging industries to add five percentage points to their share of central firms’ output by 2030.
Further strategic mergers and investment are planned during the 15th Five-Year Plan period, including in artificial intelligence, new materials and other developing fields.
China is accelerating state-owned enterprise mergers and directing more investment toward strategic emerging industries.
A reform plan issued in May 2026 sets out to optimize the distribution and structure of state-owned capital.
From January to August, central state-owned enterprises invested 1.2 trillion yuan in strategic emerging industries.
The National Data Group was formally established in Xiong’an New Area on October 20.
The government says future restructuring will focus on strategic sectors, key industries and emerging fields.
- Who
- China’s central state-owned enterprises and state-controlled listed companies.
- What
- They are undergoing mergers and restructuring, while state capital is being directed toward emerging industries.
- When
- The measures are part of a reform drive launched in 2026; the article reports developments through October 28.
- Where
- Across China, including Xiong’an New Area in Hebei.
- Why
- To improve the structure and efficiency of state-owned capital, strengthen key industrial chains and support strategic industries.
This story does not have two clearly opposing sides.
SASAC began initiatives to renew industries and develop future industries, encouraging central state-owned enterprises to enter new fields.
China Petrochemical Corporation and China National Aviation Fuel Group carried out a restructuring.
A plan for further deepening state-owned enterprise reform in 2026–2029 was issued.
The National Data Group was formally established in Xiong’an New Area, Hebei.
SASAC called for continued optimization of the state-owned economy and stronger work on key technologies.
Tibet Gaozheng Explosive Co. issued an announcement on a major asset restructuring.
- Investment, January–August 2026
- 1.2 trillion yuan in strategic emerging industries
- Central SOE investment, past three years
- 7.4 trillion yuan in strategic emerging industries
- Strategic emerging industry revenue, 2025
- More than 12 trillion yuan
- A-share state-controlled listed companies
- 1,507 merger plans disclosed by October 28, 2026
- National Data Group
- Formally established October 20, 2026, in Xiong’an New Area, Hebei
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What people are saying
During the 15th Five-Year Plan period, we will continue to make good use of strategic, specialized restructuring and integration as an effective tool.
The restructuring of China Petrochemical Corporation and China National Aviation Fuel Group reflects the strengthening of traditional key industrial chains, while the establishment of the National Data Group reflects the creation of an institutional platform for future industries.
Central and local state-owned enterprises complement each other through the two-way flow of controlling stakes, forming a coordinated central-local structure.