“Significant Chinese government ownership is also present in Jiangsu Shagang Group, which is billed as the largest private steel enterprise in China and the country’s fourth largest steel producer. The firm was formed in 1975 as a village enterprise, and changed its name to Jiangsu Shagang Group in 1995.

The firm’s ownership status changed in 2001, during a period of asset stripping management buyouts in the Chinese steel industry. Approximately 17 percent of the firm was purchased by the plant general manager and 25 percent of the firm was sold to the Jiangsu SASAC. An additional 23 percent went to the company’s labor union, which is controlled by the Chinese Communist Party, and almost 35 percent went to the “employees of Shagang.” That same year, the firm doubled its capacity by acquiring a German mill and reassembling it in China.

In 2006, it acquired Huaigang, a specialty steel producer whose ownership has at various times included the municipal government of Huai’an, the provincial government of Jiangsu, and the Nanjing Iron & Steel Group, which is owned by the Jiangsu Province SASAC.

In short, even China’s largest privately owned producer is substantially state-owned, and appears to have received capital inflows from the state in the same year it doubled its capacity.”

– “Government Ownership and Control of China’s 'Private' Steel Producers”, Published by Wiley Rein, LLP, Law Firm, Washington, D.C.

The firm’s ownership status changed in 2001, during a period of asset stripping management buyouts in the Chinese steel industry. Approximately 17 percent of the firm was purchased by the plant general manager and 25 percent of the firm was sold to the Jiangsu SASAC. An additional 23 percent went to the company’s labor union, which is controlled by the Chinese Communist Party, 9 and almost 35 percent went to the “employees of Shagang.” That same year, the firm doubled its capacity by acquiring a German mill and reassembling it in China.

In 2006, it acquired Huaigang, a specialty steel producer whose ownership has at various times included the municipal government of Huai’an, the provincial government of Jiangsu, and the Nanjing Iron & Steel Group, which is owned by the Jiangsu Province SASAC.10 In short, even China’s largest privately owned producer is substantially state-owned, and appears to have received capital inflows from the state in the same year it doubled its capacity.”

– “Government Ownership and Control of China’s 'Private' Steel Producers”, Published by Wiley Rein, LLP, Law Firm, Washington, D.C.

I'm sorry. I should have said Jiangsu Shangang Group was government-controlled, not government-owned. They aren't the same thing, and I should have been more precise with my terminology.

The firm’s ownership status changed in 2001, during a period of asset stripping management buyouts in the Chinese steel industry. Approximately 17 percent of the firm was purchased by the plant general manager and 25 percent of the firm was sold to the Jiangsu SASAC. An additional 23 percent went to the company’s labor union, which is controlled by the Chinese Communist Party, 9 and almost 35 percent went to the “employees of Shagang.” That same year, the firm doubled its capacity by acquiring a German mill and reassembling it in China.

In 2006, it acquired Huaigang, a specialty steel producer whose ownership has at various times included the municipal government of Huai’an, the provincial government of Jiangsu, and the Nanjing Iron & Steel Group, which is owned by the Jiangsu Province SASAC.10 In short, even China’s largest privately owned producer is substantially state-owned, and appears to have received capital inflows from the state in the same year it doubled its capacity.”

– “Government Ownership and Control of China’s 'Private' Steel Producers”, Published by Wiley Rein, LLP, Law Firm, Washington, D.C.

I'm sorry. I should have said Jiangsu Shangang Group was government-controlled, not government-owned. They aren't the same thing, and I should have been more precise with my terminology.