China has invested in more than 185 countries and regions with their own centrally owned businesses topping $906.34 billion. Their state-owned enterprises (SOEs) have been investing in infrastructure projects overseas along the Silk Road land and sea trade routes which is part of Beijing’s Belt and Road plan. The central government’s firms have co built 1,676 projects with countries along the Belt and Road where they invested greatly to boost the China’s relationships with economies throughout Asia and other countries worldwide.
By the end of this year, China’s SOE’s assets are expected to reach 55 trillion which is almost double over the past 5 years. The country hopes to create larger and stronger state firms as well as build enterprises that are capable of competing globally while cutting out excessive capacity in overfilled sectors without risking major layoffs or blow to economic growth. Over the past five years, SOE’s profits totaled to 6.4 trillion yuan, marking it a 30% jump.