State-owned Construction Enterprises Reform And Building Industry Development

Over the next five to 10 years, China will carry out the development strategy of expanding domestic demand and adding infrastructure investment. With the sustained and high-speed growth of its domestic economy, China building market still has much room to develop. According to China's WTO commitments, by 2005, China must allow foreign investors engaged in the building industry in China to set up their own enterprises for reconnaissance and design, departments for supervision and agencies for bidding. Restrictions on the establishment and scope of solely-funded enterprises in the building industry will be banned, thus foreign investors will enjoy the same treatment as Chinese enterprises. At that time, accompanying the expansion of the market and increasing competitiveness of foreign enterprises, competition in china building market will become fiercer. Although the domestic market share has been shrinking in recent years, state-owned construction enterprises have inherent advantages of their own To strengthen Chinese building industry, we must pay close attention to the development of state-owned construction enterprises. State-owned construction enterprises reform is the core of this paper. This paper tries to exercise modern theory of the firm and take the features of building industry into consideration simultaneously, analyzes the present problems of those state-owned enterprises a nd d iscusses on seeking the way of reform as well. The writer reckons that property right is the prime problem of state-owned construction enterprises and the institution circumstances is the precondition of building industry development, We can draw a conclusion, by property rights reform and building market housecleaning, state-owned construction enterprises could restore its energy and become the leader of building industry development.