Two major Chinese state-owned enterprises—China Electronics Technology Group Corporation (CETC) and China Electronics Corporation (CEC)—have announced a strategic partnership involving cross-shareholding arrangements between their subsidiaries.

On the evening of November 9, Shenzhen SED Industry Co., Ltd. (Shenzhen SED), a listed company under CEC, disclosed that its controlling shareholder’s affiliate, CEC JinTou Holding Co., Ltd. (CEC JinTou), signed agreements with two wholly-owned subsidiaries of CETC—China Electronics TaiJi (Group) Co., Ltd. (CETC TaiJi) and CETC Investment Holdings Co., Ltd. (CETC Investment).

Under the agreements, CEC JinTou will transfer 22.68 million shares (1.9930% of total shares) of Shenzhen SED to CETC TaiJi and 11.57 million shares (1.0170% of total shares) to CETC Investment. Post-transfer, CEC will retain a 44.2214% stake, maintaining actual control, while CETC will hold 3.01% of Shenzhen SED through its subsidiaries.

On the same day, CETC’s listed subsidiary, TaiJi Computer Corporation Ltd. (TaiJi Computer), announced that its controlling shareholder, CETC TaiJi, and affiliate CETC Investment signed agreements with CEC JinTou. CETC TaiJi will transfer 19.16 million shares (3.0738% of total shares) of TaiJi Computer to CEC JinTou, while CETC Investment will transfer 9.78 million shares (1.5685%). After the transaction, CETC will retain a 34.1149% stake, keeping actual control, while CEC will hold 4.6423% via CEC JinTou.

Both announcements stated that the share transfers aim to deepen strategic cooperation between state-owned enterprises, enhance industrial synergy, foster ecosystem integration, and advance China’s digital and intelligent transformation to better support the national digital economy.

The transactions are pending approval from the State-owned Assets Supervision and Administration Commission (SASAC) and compliance confirmation from the Shenzhen Stock Exchange.

According to official profiles, CETC is a key state-owned enterprise directly managed by the central government, serving as a core force in China’s defense electronics, cybersecurity, and strategic technology sectors. It operates over 700 entities, including 47 national research institutes and 17 listed companies, with more than 200,000 employees (55% in R&D) and 41 national-level labs and innovation centers.

Founded in May 1989, CEC is a pioneer in China’s military electronics industry and a central state-owned enterprise focused on cybersecurity and IT. It employs 189,000 staff, controls 16 listed companies, and operates in over 60 countries with total assets of 476.46 billion yuan.