China National Nuclear Huaxing is a subsidiary of China National Nuclear Corporation and belongs to the category of state-owned enterprises. According to the Law of People's Republic of China (PRC) on State-owned Enterprises, state-owned enterprises refer to enterprises invested or authorized by the state, including enterprises owned by the whole people, enterprises owned by collectives and other enterprises authorized by the state to invest. As a subsidiary of CNNC, CNNC Huaxing belongs to the state, so it belongs to the establishment of state-owned enterprises.

The establishment of state-owned enterprises means that the state regulates and manages the organizational form, management system and staffing of state-owned enterprises.