On February 4, China FAW Group and the China Automotive Technology and Research Center (CATARC) jointly announced in Changchun, Jilin Province, that they would carry out a professional integration of their automotive testing operations to build the world's largest automotive testing institution. This professional integration between the two central state-owned enterprises (SOEs) will be implemented through an equity transfer, under which CATARC will take a controlling stake in Changchun Automotive Test Center, a subsidiary of China FAW Group.

Following the integration, CATARC's portfolio of technical service capabilities will expand to more than 6,000 items. While achieving full coverage of testing, certification, and related services for intelligent, connected new energy vehicles, the integrated entity will also establish a systematic technical support framework for Chinese automakers going global. This will help China better integrate into the global automotive standards system and the evolving industrial landscape.

Experts note that the professional integration of automotive testing operations between these two central SOEs—together with a series of earlier strategic consolidations involving other central SOEs—clearly indicates that SOE restructuring has entered the "deep-water zone". Looking ahead, the State-owned Assets Supervision and Administration Commission of the State Council will further optimize the layout and adjust the structure of the state-owned economy, in a bid to step up the development of more world-class enterprises.

Source: CCTV News  Editor: Liu Jiadi