Esearch on Classification Reform of Chinese State-Owned Enterprises

Xu Lin,Yuan Wei,Jiang Yuan,Zhang Guoyi

doi:10.5539/ijbm.v14n5p106

Abstract

The classification reform of state-owned enterprises is a major movement in the process of the new round of reform of state-owned enterprises in China. This paper will focus on the implementation of the classification reform of state-owned enterprises, and conduct research and analysis on the implementation path, current situation and difficulties of the classification reform of state-owned enterprises. The first part of the implementation path is divided into three levels: the transfer of capital to the management of the property level, the formation of a differentiated governance structure combining internal and external governance, and the clarification of the authority of state-owned assets. The implementation logic of the three levels is elaborated. The second part of the local provinces&#39; relevant initiatives were introduced from the functional positioning and classification, the implementation of supervision and the implementation of the mixed ownership reform. The third part focuses on the key points and difficulties of the reform of state-owned enterprises. It mainly studies the practical issues of &ldquo;diversified and multi-functional&rdquo; classification reform of state-owned enterprises and regulatory conflicts, &ldquo;rights&rdquo; and &ldquo;human rights&rdquo;. The fourth part promotes the policy recommendations for the effective implementation of the classification reform of state-owned enterprises.

Highlights

Give full play to the decisive role of the market in the allocation of resources in the Chinese economic system
It is necessary to rationalize the institutional design of the Chinese central government and local governments to protect the effectiveness of market mechanisms such as price, competition, and information, and to cultivate clear property rights from the micro level
State-owned enterprises of China have made great contributions to the healthy development of the national economy for a long time. Many problems such as unclear property rights in the development of state-owned enterprises, lack of incentives for business operations, low operating performance, and loss of state-owned assets cannot be properly resolved, which will inevitably have a negative impact on the sound and perfection of China's socialist market economy

Summary

Introduction

Give full play to the decisive role of the market in the allocation of resources in the Chinese economic system. In order to build a state-owned enterprise that is suitable for the development of the market economy, and accelerate the reform of state-owned enterprises to achieve quality and efficiency, the "Guiding Opinions on Deepening the Reform of State-Owned Enterprises" issued by the Central Committee of the Communist Party of China and the State Council in August 2015 is the general framework for the new round of reform of Chinese state-owned enterprises. It divides state-owned enterprises into two categories: commercial and public welfare. The specific implementation path involves three levels of reform, and these three levels of reforms show a progressive relationship

State-Owned Enterprise Classification Reform and Mixed Ownership Reform

Differentiated Governance Structure

Classification and Functional Positioning of Local Soes in Some Provinces

Implementation of classification supervision in some provinces

Promotion of Mixed Ownership Reform in Some Provinces

Difficulties in the Implementation of the Reform of State-Owned Enterprises

Structural Conflicts between “Rights” and “Human Rights”