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The New State Capitalists; Governments are getting back into the business of business.

Newsweek International

| May 01, 2006 | Wehrfritz, George; Kolesnikov-Jessop, Sonia; Matthews, Owen; McNicoll, Tracy; Underhill, William | COPYRIGHT 2006 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: George Wehrfritz (With Sonia Kolesnikov-Jessop in Singapore, Owen Matthews in Moscow, Tracy McNicoll in Paris and William Underhill in Dubai)

Until late 2004, the world hadn't heard of the ChemChina Group for one simple reason: it didn't yet exist. With the stroke of a pen, China's policymaking State Council shuffled assets in a handful of government-owned companies and, voilA , the China National Chemical Corp. was born. With eight subsidiaries and five listed companies, the group overnight became a dominant manufacturer of ethylene (used to make plastics) in the fastest-growing major economy. It also took on an urgent new mission: to get even bigger.

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