Is FAW a Central State-Owned Enterprise?
3 Answers
FAW is both a state-owned enterprise and a central state-owned enterprise. China FAW is a central enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council. The following is a basic introduction to FAW: 1. Introduction: China FAW Group Corporation (abbreviated as FAW Group, China FAW or FAW, with the English name FAW), located in Luyuan District, Changchun City, Jilin Province, China, was formerly known as the First Automobile Works. Its factory name was personally inscribed by Chairman Mao Zedong, and it was founded by Rao Bin on July 15, 1953. 2. Business: Seven Business Segments: FAW is centered on building a world-class mobility service company, with its development vision and goals focused on brands, and its business is divided into seven segments. The group headquarters directly operates the "Hongqi" brand. Technological Innovation: In terms of technological innovation, FAW has a national key laboratory and a postdoctoral workstation. Over the past decade, its scientific and technological research achievements have won more than 150 national and industry awards. The "Independent Development of the Sixth Generation Jiefang Heavy-Duty Commercial Vehicle Series and Diesel Engine" project won the first prize of the National Science and Technology Progress Award. Open Cooperation: In terms of open cooperation, FAW has established long-term strategic partnerships with multinational automotive companies such as Volkswagen, Audi, and Toyota. It actively participates in the "Belt and Road" initiative, with one overseas factory and 12 authorized KD assembly plants, covering 48 countries. It has also carried out comprehensive and in-depth strategic cooperation with local governments, universities, enterprises, financial institutions, and research units.
Well, as a seasoned veteran in the automotive industry, I firmly believe that FAW is undoubtedly a central state-owned enterprise. Back in the 1950s, shortly after the founding of New China, the central government established the First Automobile Works in Changchun with the goal of building an independent automotive industry, directly managed by top-level authorities as state-owned assets. Over the years, FAW's brands like the Hongqi sedan have become symbols of official state vehicles, renowned for their solid quality. Consumers trust them, unlike private enterprises that prioritize profits alone. Its status as a central SOE also enables FAW to easily secure major government projects, such as investments in new energy vehicle R&D and advancing domestic production. This is common knowledge in our industry and has influenced a generation's car-buying decisions. After all, with the state's backing, service guarantees are reliable, making FAW the cornerstone of China's automotive sector in the long run.
As someone who focuses on automotive economics, I view FAW from a practical benefits perspective—it's undeniably a central state-owned enterprise (SOE), the type of core entity directly supervised by SASAC under the State Council. Its status as an SOE grants it significant advantages, such as prioritized financing support and a share in government procurement, which are crucial in the fiercely competitive market. As an industry leader, FAW drives the local economy in Changchun, creating numerous jobs while rapidly expanding into the EV sector under national green transition policies, with swift technological upgrades. For consumers, the credibility of its SOE background boosts sales, as people trust the brand's reliability and after-sales service. However, this also sparks debates about fair competition, though overall it benefits industrial health by ensuring strategic sectors remain free from foreign monopolies.
