State-owned enterprises (China)

State-owned enterprises (SOEs) in China are companies owned and operated by the government. These enterprises play a crucial role in the economy, managing sectors such as energy, transportation, and telecommunications. The government uses SOEs to control essential resources and services, promote economic development, and maintain social stability. While they can ensure public welfare and employment, SOEs are often criticized for inefficiency and lack of competition. China's economic reforms have allowed some SOEs to operate more like private companies, focusing on profitability while still serving state interests.