More Chinese Central Enterprises Exit Beijing to Unclog Capital, Benefit Local Economies
Zhu Yanran
DATE:  Nov 30 2021
/ SOURCE:  Yicai
More Chinese Central Enterprises Exit Beijing to Unclog Capital, Benefit Local Economies More Chinese Central Enterprises Exit Beijing to Unclog Capital, Benefit Local Economies

(Yicai Global) Nov. 30 -- Seven central enterprises, which are directly owned by China’s central government, either are in the process of shifting their headquarters out of the capital or completed their move this year as part of the government’s bid to shift non-essential institutions out from the overstretched city to free up resources and allow them to get closer to their main operation bases.

China Electronics will finish its relocation to the hi-tech hub of Shenzhen before the end of the year, according to Yicai Global research. China Three Gorges is getting closer to its main hydropower plant by shifting to Wuhan, China State Shipbuilding is moving to the port city of Shanghai, China Electrical Equipment Group is also moving to Shanghai while China Satellite Network Group, Sinochem Holdings and China Huaneng Group will set up in the Xiong’an New Area close to Beijing.

Most central state-owned enterprises are based in the capital as they were set up by the country’s cabinet as part of the planned economy, Li Jin, chief researcher at the China Enterprise Research Institute, told Yicai Global. However, the concentration of such big companies in one municipality is a drain on resources and is not in line with their mode of operations.

The new HQs are attracting a lot of attention. If China Rare Earth Group moves to eastern Jiangxi province, which is rich in rare earth resources, it will also support the local economy and drive regional development, Li said.

The State Council has been urging these central enterprises, of which there are 96, to quit the capital since 2015.

Editors:Tang Shihua, Kim Taylor
 

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Keywords:   Headquarter Transfer,Leaving Beijing,State-Owned Enterprises,Central Government