Jiangsu Attracts Increasing Investment from State Owned Enterprises Go back »

2009-03-26 | Nanjing

‘A State-owned enterprise is a legal entity created by a government to undertake commercial or business activities on behalf of an owner government, where all the shares are owned by the state or by the government.’

In order to launch multilateral cooperation, last month a delegate of state owned enterprises from Jiangsu province joined 110 central enterprises at the ‘Cooperation and Development Forum’ held in Beijing’s Great Hall of The People.

As reported by ‘China Daily’, this signing ceremony saw Jiangsu Province succeed in concluding agreements with 35 State-owned enterprises (SOEs) which will result in 45 projects with a total investment of 222 billion Yuan ($32.46 billion).

Jiangsu's economy is a focus for foreign investment which largely down to its easy access to international trade. Although covering only 1.1% of China’s entire territory and being home to only 5.7% of its total population, Jiangsu's GDP exceeds 10% of the national GDP. This represents more than a 14% increase on the previous year.

This new injection of funds into State-owned enterprises sees Jiangsu become one of the Provinces with the largest volume of investments from Central enterprises. According to statistics, in 2008 the 310 State-owned enterprises operating in Jiangsu generated business revenue of 1.1 trillion Yuan, accounting for one sixth of the province's total revenue, and providing more than 500 thousand jobs.

The 45 projects, which primarily focus on advanced manufacturing and service sectors (including equipment manufacturing industry, important basic chemical industry, new energy and new material industry, research bases, logistics distribution centre) will receive investments from China’s most competitive and well known State-owned enterprises such as Sinopec and the State Grid.

14 of the 45 projects will receive an investment of more than 5 billion Yuan. Notable projects including a wind power plant in Nantong invested by China Guodian Corp. and a container terminal by COSCO Group in Suzhou. The biggest single project will be funded by China Communication Construction Co. Ltd and will be located in Lianyungang’s coastal development area. This project will receive total investment of 20 billion Yuan.

These 45 projects have significantly increased the significance and productivity of key industries in the province, and they also have created new channels and paths through which the Jiangsu economy will develop and grow. One of the strategic tasks of the State Council is to invigorate the equipment manufacturing industry. In this sector, Jiangsu province last year invested more than 120 billion Yuan, with a final output of 800 billion Yuan.

Moreover, the launch of some other large scale projects, in fields such as chemical materials or urban transportation, will undoubtedly enhance the competitive power of local industry and the infrastructure system itself.

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