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China's state-owned enterprises (SOEs) are making more efforts on scientific innovation to cope with competition among large-size companies.

Moody's Investors Service Tuesday estimated that liabilities worth 20 per cent to 25 per cent of China’s GDP could potentially require restructuring. Statistics released by the National Bureau of Statistics shows that China's GDP in 2015 was 67.67 trillion yuan. According to Moody's prediction, at least 13 trillion yuan of SOEs' debts are to be restructured.

Lu Weidong, an official from State-owned Assets Supervision and Administration Commission (SASAC), told Thepaper.cn that the competition of comprehensive national strength boils down to the competition between big companies and groups, and competition in scientific innovation is the main factor in the competition between large companies. Lu said that SASAC aims to promote supply-side structural reform via scientific innovation and to improve quality and efficiency of SOEs.

Yuan Leifeng, an official with SASAC, told Thepaper.cn that the investment for scientific research has increased from 270 billion yuan in 2011 to 350 billion yuan in 2014, accounting for 25 per cent of total national research and development of expenditure.

SOEs have made great achievements in scientific innovation including high-speed rail, 3rd generation nuclear power, 4G communication and manned space flight.