The State-owned Assets Supervision and Administration Commission (SASAC) will no longer supervise China Hi-Tech. China’s textile conglomerate China Hi-Tech Group Corporation has become a wholly-owned subsidiary of China National Machinery Industry Corporation (Sinomach), an equipment manufacturing group.
Before this announcement, the number of central State-owned enterprises (SOEs) has reduced to 101. The SASAC aims to bring down the number of central SOEs to under 100 as part of the ongoing reforms to increase efficiency of the companies.
The merger of China Hi-Tech with Sinomach is also in line with the Chinese government’s objective of raising the competitiveness of SOEs, and bringing technology and research capabilities to companies such as China Hi-Tech Group.