This paper critically evaluates the relationship between state capitalism and "strategic coupling" within global production networks (GPN). It underscores specifically the lack of cases on "coupling" involving state-owned enterprises (SOEs) from developing countries and city-regions within developed countries. Most existing studies focus on the connection between regions in developing economies with lead firms originating from developed economies. This leaves open a conceptual and empirical gap as SOEs from developing countries (like those of China and India) are (1) increasingly becoming lead firms in their own right and (2) investing in developed economies. Against this backdrop, this paper highlights conceptually significant points from the acquisition of Nexen, a Canada-based oil and gas TNC, by CNOOC, a large Chinese SOE, and argues for a fresh research agenda that examines the strategic coupling of lead firms that are also SOEs from developing economies.The state capitalist countries do not exist apart from the rest of world capitalism; they are an integral part of it, one where state ownership and state enterprise have become the predominant institutional form for the operation of the economic mechanism of capitalism. (Buick & Crump, 1986, p. 15) State action and inaction is often a key aspect of GVC/GPN research narratives (about firms, regions, nations), but is rarely placed in the foreground, and even more rarely, given due theoretical consideration.