The Rise of Quasi SOEs

A Chinese model arrives in America: state-owned enterprises

Aug 21, 2025

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The unorthodox idea by the US government to take a 10% stake in Intel in exchange for CHIPS Act grants (around $10.9 billion) is not a shallow or “one-off” move. It represents a turning point for the US and the American business world, fueled by the intensifying geopolitics around the globe.

This is yet another sign that America is employing “state capitalism” to drive a new decade of global leadership.

However, what is forming is a strange situation with profound global consequences.

For over two decades, Washington has criticised China for having state-owned enterprises (SOEs). These organizations have grown into global behemoths that underpin the world economy. Their size should not be underestimated. A study from 2017 calculated that these businesses represent up to 28% of the entire Chinese economy, almost $3.5 trillion based on China’s GDP at the time (around $12.5 trillion).