The State-owned Assets Supervision and Administration Commission (SASAC), which oversees 97 large conglomerates, on Friday launched a pioneer system for large conglomerates to foster unicorns and high-tech startups to form clusters and tackle new innovations. I launched it. State media outlet Xinhua News Agency reported that it has promised sufficient support and resources in the process.
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Is Chinese technology falling behind in its own ChatGPT race?
Is Chinese technology falling behind in its own ChatGPT race?
Several up-and-coming high-tech subsidiaries nurtured under large state-owned parent companies over the past three years participated in the first round. These include China Telecom's Telecom Quantum, China Aerospace Technology Corporation's Rocket Medical, and an AI-powered geological survey company operated by China Coal. Technology and Engineering Group.
“SASAC has a clear mandate that the development of emerging and future industries is a critical mission. State-owned enterprises foster start-ups and enterprises within their own ecosystem, while also supporting external investments and We will also take advantage of merger opportunities,” China Merchants Securities analyst Lin Shipen said in a note on Monday.
Hu Yongjun, an official at the National Information Center under the National Development and Reform Commission and China's top economic planner, told state media last week that China must plan ahead to become a leader in the global technology race. He said this was an urgent matter.
But Fu Weigang, director of the Shanghai Institute of Financial Law, a think tank, doubts whether state-owned enterprises, especially the central government-controlled lumber giants, are agile and flexible enough to take the lead in high-tech.
“There are risks and uncertainties involved when state-owned enterprises run high-tech companies. A not-so-distant example is: [Communist Party media outlet] People's Daily invested a large amount of money to launch a search engine, but it failed. “Similar failures could be repeated in areas like AI,” he said.
“One of the fundamental reasons is that the core assets of high-tech companies are usually technology and researchers; [they] This effect could be undermined if many state-owned enterprises cap salaries and bonuses and prioritize other issues over efficiency. ”
They may wonder if government support will be cut to favor state-owned enterprises.
Alex Ma, assistant professor of public administration at Peking University, worries that promising “hidden champions” and “little giants” will be left behind as “national teams” of state-owned enterprises join the high-tech movement. He said there is a possibility.
“They may wonder whether government support will be cut in favor of state-owned enterprises or whether they will be bought out,” he said.
“We can expect synergies as hidden champions and small giants focus on advanced manufacturing, while state-owned enterprises strive to achieve breakthroughs in future industries.”
