China Leadership Monitor

Claiming Profit for the State: SASAC and the Capital Management Budget

Friday, July 7, 2006

One of the most important economic issues playing out in China today is the control of state enterprise profits. State firms have become very profitable over the last several years, so there is a lot of money on the table. At the same time, control over profit is a central component in a network of interlocking issues, including corporate governance reform, fiscal reform and even social security reform. The State Asset Supervision and Administration Commission (SASAC) has taken major steps in 2006 toward establishing a claim on these profits and advancing its own agenda for reform of the state sector.