This hearing by the US-China Economic and Security Review Commission examine three aspects of China’s economic policy. The first is China’s state-owned or state controlled companies and industries, which together constitute an estimated 30 to 40 percent of China’s economy. These companies, generally the largest ones in China, are operated and managed by the central government of the People’s Republic. They are an instrument of state power and industrial policy. They receive government subsidies and are protected from competition from foreign companies. In addition, there are more than 100,000 smaller companies that are owned or operated by provincial and local governments.

These state-owned enterprises are increasingly active globally, seeking to expand China’s economic opportunities and power around the globe. They’re involved in aerospace, autos, oil, steel, telecommunications and numerous other industries.

http://www.uscc.gov/hearings/2011hearings/transcripts/11_03_30_trans/11_03_30_final_transcript.pdf