China's SOEs beat hamstrung private sector in profits

Signs of distortion emerge from Xi's emphasis on state sector

20211015N China chemical plant

A petrochemical plant in China's Liaoning Province: State-owned enterprises on the upstream end of supply chains are less vulnerable to rising costs. (Photo by Shin Watanabe)

IORI KAWATE, Nikkei staff writer

BEIJING -- China's state-owned enterprises have pulled ahead of the private sector in profitability this year, as private businesses grapple with an array of challenges including regulatory crackdowns, cash crunches and soaring material costs.

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