What are the pros and cons of having so many state-owned companies?
State-owned enterprises accounted for over 60% of China's market
capitalization in 2019 and generated 40% of China's GDP of US$15.97
trillion (101.36 trillion yuan) in 2020, with domestic and foreign
private businesses and investment accounting for the remaining
60%. As of the end of 2019, China's SOEs represented 4.5% of the
global economy and the total assets of all China's SOEs, including
those operating in the financial sector, reached US$78.08 trillion.
Ninety-one (91) of these SOEs belong to the 2020 Fortune Global 500
China has a lot of state-owned companies, but if owning so many state-owned companies only had benefits for the nation having them, then how come other countries don't emulate China? That's why I am wondering what the pros and cons are for any nation for having a lot of state-owned companies.
I can't think of any con, and I think of two pros, unlimited budget and financing from the government and higher income from other sources than taxation.