Riding out the Storm: How State-Owned Enterprises in China Fought the COVID Crisis

The COVID-19 pandemic disrupted economic and social activities worldwide, exposing and exacerbating inherent flaws in the capitalist system. The pandemic’s devastating impact highlights the need for the state and its institutional agencies to actively intervene in public health crises and mitigate the economic damage they cause. This article situates the effectiveness and contribution of state-owned enterprises (SOEs) in the context of the COVID crisis in China. It first examines how SOEs successfully mobilized their productive capacity at the beginning of the pandemic. Using empirical evidence from publicly listed companies, we then demonstrate how SOEs engaged in countercyclical investment when private investment collapsed. The evidence suggests that SOEs served as a crucial instrument in strengthening social and economic stability, which helped China ride out the COVID storm. We conclude that SOEs are vital for achieving stable social and economic performance in a neoliberal global economy. JEL Classification: E11, O47, P31