China to develop ‘national team’ of state-owned giants, but efficiency concerns linger
- China Baowu Steel Group became the world’s largest steelmaker last week, when it announced output hit a record 100 million tonnes this year
- The company’s success has highlighted Beijing’s goal of creating a ‘national team’ of globally competitive, innovative state-owned enterprises
Chen Derong, the chairman of China Baowu Steel Group, broke into tears last week as he announced the company had produced a record 100 million tonnes of steel this year.
It was a “dream come true,” Chen said, as the Shanghai-based mill surpassed ArcelorMittal, an Indian-Luxembourg multinational, to become the world’s largest producer and highest-earning steelmaker.
“Central government SOEs must be the ‘national team’ that can provide solid support for economic and social development,” Hao Peng, head of the State-owned Assets Supervision and Administration Commission (SASAC), said at the agency’s annual conference on Friday, just two days after Baowu celebrated its accomplishment.
We must build a group of industrial champions, a group of technologically-innovative pioneers, a group of leaders in specialty fields
“We must build a group of industrial champions, a group of technologically-innovative pioneers, a group of leaders in specialty fields, and a group of enterprises that can guarantee supply of basic [materials and goods],” he said, while outlining priorities for 2021.
