The Institutional Changes Of China's State-owned Enterprises And Exploration For The Target Mode

Since the year of 1978 of the beginning of the reform and open-up of China, it has been 30 years for the reform of China's state-owned enterprises. If we count in the decades of the establishment of large state-owned enterprises since the foundation of the country, then it will be 60 years. During this period the state-owned enterprises began to get rid of the bondage of the old system and developed fast with the formation of the socialist market economy. At the same time this development pushes the whole economy soaring in an unexpected speed, which was called'china's miracle'. Therefore,'china mode'is employed to summarize the development route of china's economy.'In front of the mirror appearance is adjusted, in front of history knowledge is gained', thereby, research of the past offers reference to the future. Especially at this crucial period of 30 years of the reform of China's state-owned enterprises, research of this category presents its significance. With this purpose, this thesis makes a clear outline and deep research of various aspects of the transformation of the system and mechanism of China's state-owned enterprises in hope of possible contribution to the theory and practice of reform of China's state-owned enterprises.The reform of China's state-owned enterprises falls into three parts: the reform of property rights,the reform of corporate management organization and the reform of the mechanism of asset management. During the time of planned economy the property rights are relatively clear and it belongs completely to the government. Under this kind of constitution of property right the state-owned enterprises'development greatly depend on the government and at the same time the government's macro direction of the development and coordination of the national economy largely depend on the state-owned enterprises. However, enterprises under this kind of mechanism own no initiative and no impulse to pursue any interest. All the content they can express is nothing but simple productive index, which do not possess the factors of a typical enterprise, and it also perform the double function both socially and politically. That is the key reason why the scholars at that time claimed that China had no enterprises in real sense. When the shortcomings are becoming more and more and obvious and dragging the speed of national economy, reform is the inevitable choice for the survival of state-owned enterprises. For the moment excluding some enterprises concerning important and key areas are controlled by the government, most of the state-owned enterprises are transformed into shareholding companies and modern corporate system is primarily established. For the next step continuing to regulate and perfect the relevant systems of property rights and reform some of the monopoly enterprises should be taken into consideration.From the point of view of the reform of corporate management organization, since the government manages the enterprises in a way of administration, then the organization of the corporate management must be simply administrative. The directors of the enterprises are appointed by the government and they act as the agents of the government in the enterprises, who possesses absolute power in them. And all the ways to stimulate and regulate the directors are the administrative orders from the government. The worker's union and the worker's congress hold a higher position in the enterprises, but their influence are not prominent. The party committee always acts in two different ways: one is weak regulation on the director, and the other is work separately with the director. In a word, the corporate management organization under planned economy is basically a failure. The corporate management organization depends of on the reform of the property right. When the modern corporate is establish through the reform of property right, modern corporate management organization can be accordingly established. However, the problem is that the new organization is not able to realize the effect that is expected, that lies in the bondage of the old system and ideas. Therefore the in-depth reform of the corporate management organization in the frame of market economy and makes it work will still be an important task in the future.From the point of view of the mechanism of asset management, the natural absence of owner of the state-owned assets is the fundamental reason of kinds of problems of state-asset. Under the frame of planned economy the loss of state-owned assets mainly embodies on the aspect of productive loss because of the forms of ideology, but during the transferring period, the loss mainly embodies on the unproductive aspect and cases of the legal absence of state-owned assets are increasing. The whole management situation is chaos. For the time being with the carrying out of the Law on State-owned asset and the establishment of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the management of sate-owned assets is gradually improved, however, the strength is not enough and the public is raising doubt about the identity of the SASAC. Therefore, to continue the research of new mode of management mechanism of the state-owned assets and strengthen the supply and regulation of the concerned laws should be given stress to in the future.In the last chapter the author discusses the mutual influence of the changes of the corporate system of the state-owned enterprises and the increasing mode of China's economy, and analyzes the experiences of the changes of the corporate system of the state-owned enterprises. The reason why the way of development of Chinese economy is called"China Mode"is its presentation of special existence of government's macro regulations under the system of market economy, which is also an important reason why it is called''Beijing Consensus"and"China Mode"by the western scholars. The failure of market fundamentalism represented by"Washington Consensus"and the after-thought of the new liberalism in the financial crisis give prominence to our mode of economic development. The basic reason for the formation of this kind of mode is the result of the establishment of socialist market economy system by analyzing our own situation. When the absolute economy is substituted by both plan and market, the mainstay function of our state-owned enterprises is played to their fullest. To continue to promote the role the stage-owned enterprises in promoting our economic development and employing the government macro regulation will still be a mode that must be followed in order to establish and perfect China's socialistic economy.Firstly, the combination of government, state-owned enterprises and the market economy is inevitable in our national economic development, and the state-owned enterprises experience kinds of conflicts and coordination under this market economy system and operation mechanism. This process of conflicts and coordination forms the ways of changes of the system of state-owned enterprises. Secondly the initiation of the reform of the state-owned enterprises is mainly the changes of passive administrative orders, mainly through the carrying out of orders of the government. However the nature of market economy is to finish the induced institutional change with the micro entity as the leading party. China's institutional change is moving towards this direction. Third, the insufficiency of the present knowledge storage determines that China's reform of the state-owned enterprises can only"wade across the stream by feeling the way". In some sense without proper and effective knowledge accumulation there will be no institutional changes and innovations. Therefore, institutional changes will be an accumulation of experiences during practice and this process will be conducted gradually. Last but not the least, institution is the result of artificial design and natural evolution, and China's reform will largely depend on artificial design, which has its inevitability. At the same time natural evolution during this process usually leads to some transformation of the reform, so the enterprises should shorten the cognitive time-delay, strengthen the prior design, the process supervision and the correction thereafter.