In which sectors of the economy do SOEs still dominate?

State-Owned Enterprises (SOEs) play a significant role in the Chinese economy, especially within key sectors that are vital for national development and strategic interests. The correct response highlights industries such as steel, petroleum, telecommunications, and transportation, where SOEs continue to maintain a dominant presence.

These industries are critical to China’s economic infrastructure and national security. In the steel sector, for instance, SOEs control the majority of production, positioning China as the largest producer and consumer of steel globally. The petroleum sector is similarly critical, with major state-owned companies managing significant resources and refining capacities, ensuring that the state retains control over energy supply and production.

Telecommunications in China is another area where SOEs like China Mobile and China Telecom dominate, providing essential communication infrastructure and services that support both domestic and international connectivity. Furthermore, transportation, including railways and airlines, is predominantly state-operated, reflecting the government's strategic approach to managing resources and facilitating economic activity.

In contrast, other sectors listed, such as hospitality and retail, agriculture, and technology, experience a more diversified market structure with significant private sector participation. Consequently, while SOEs are vital components of China's economic landscape, their dominance is firmly entrenched in specific strategic sectors that shape the broader economy.