Analysis Of TVEs Ownership Transition In Xiushan

Township and village enterprises (TVEs) are unique in China and are very rare in other parts of the world. This kind of ownership is very special because on the one hand, it is private and has a nature of exchange and on the other hand, it was under strict limitation of the Planning Economy as soon as it came into being. This Chinese phenomenon is regarded as a mystery and has aroused extensive interest and attention home and abroad.From different angles, scholars and specialists have widely commented on the development of TVEs as well as the difficulties they are faced with. However, in the author's thought, the current publications with this regard in most cases focus on isolated phenomena, like analysis of the surplus labor in the rural areas, without considering the development trend of TVEs, and therefore the conclusions drawn from the studies are rather incomplete. The author attempts to make a tentative study of the birth, development trend and future of TVEs based on his past experience and surveys. The author holds that the key to a thorough understanding of TVEs is to study the transition of the ownership structure of the enterprises and the route of the transition,In order to achieve this goal, the present paper pays great attention to the distribution system of TVES in different stages: work point system, salary system, profit sharing system, contracting system and leasing system. Two examples of TVEs in Xiushan County, Pingkai Mechanic Plant and a manganese enterprise are taken to illustrate the background, justification and significance of each distribution system. For convenience of the study, the author clarifies the enterprises into two categories, i.e. collective ownership and non-collective ownership. The paper demonstrates that under the incluence of privatization of human resources and maximization of personal interest, and with human capitals continuously accumulated in TVEs, the status of TVEs in the negotiation with government is greatly enhanced, and gradual transition of power from government to TVEs executives is inevitable indeed.As for the route of ownership transition, the conclusion drawn in this paper is that the transition of collective ownership in TVEs to non-collective ownership is irreversible. At the end of the paper, some recommendations made to the TVEs in Xiushan County are also provided.Though based on case studies of TVEs in Xiushan Couty, the methodology and theconclusion of the paper are aimed to catholicity and guidance for TVEs studies in China, so the analysis of TVEs systems in the paper might be regarded as a supplument to the analysis of the system transition in China.