Difficult Points And Countermeasures Of The Deepening SOE Reform In The Old Industrial Base Of The Northeast

Without revitalization of the State-owned enterprises (SOE), there will be no overall revitalization in the Northeast. Without structural adjustment and optimization of State-owned economy, it will be difficult to accelerate adjustment and reform in the old industrial base of the Northeast. Therefore, to deepen the SOE reform and push forward in the overall way the market-based process is a key link and the only way to revitalize the Northeast. Ⅰ．Understanding and practice of the reform of State-owned enterprise in our country Understanding of the reform is a summary and development of the reform practice, and also the guideline for the reform practice. The breakthrough of the reform Understanding on some key issues will greatly promote practice of the reform. The theory of the SOE reform, starting with the surrender of right and concession of a bigger share of profits in 1978, has gone through so far over-20-year exploration and practice. The third session of the fourteenth Chinese Communist Party's Congress (CCPC) clearly pointed out the direction to establish modern enterprise system. The fourth session of the fifteenth CCPC summed up 10 policies generalizing the primary experience of State-owned enterprises within many years. The third session of the sixteenth CCPC made a theoretical exploration and breakthrough in a deep level on issues such as equity. Since 1978, the practice of the SOE reform has generally experienced four stages: the surrender of right and concession of a bigger share of profits, separate management of two rights with contracting the main form, change of the management mechanism of enterprises and establishment of the modern enterprise system. After the third session of the sixteenth CCPC, the government will explore how to afford the reform cost in the Northeast in an obvious situation that it is the reform leader, and finish the process of competitive State-owned enterprises to withdraw from industries they are in for the entrance of private enterprises according to the principle that some enter and some withdraw, and therefore to push forward in the overall way the market-based process. The SOE reform will come to a completely new age. Ⅱ．Difficulties and obstacles old industrial base of the Northeast faced with to deepen the SOE reform The key to adjust and reform the old industrial base of the Northeast is how to well carry on the SOE reform. At present, the SOE reform has developed into the most difficult moment. Conflicts and problems which are most difficult to solve have gradually become apparent as follows:(ⅰ)The State-owned economy accounts for a high proportion, which leaves the reform and adjustment in a great difficulty. Because of the high proportion of State-owned enterprises, the reform cost of Jilin Province is 3 times higher than the average level of provinces in the coastal area. The cost of both Liaoning Province and Heilongjiang Province are also much higher than the average level rather than lower. Therefore, in the whole Northeast area, the market-based reform of State-owned economy is a heavy task; and it is greatly difficult for State-owned enterprises to withdraw. (ⅱ)In the Northeast people's idea lags behind; and with a single ownership, people lack enough mental preparation for market competition. The Northeast economy is injured in as well as benefited from the old system. Workers and the society are psychologically yearning for a reform. Meanwhile they are unwilling to change the old system. Quite a lot of cadres and workers are anxious about and fearing of the competition in the system of market economy without enough mental preparation for the competition pressure. (ⅲ)In the Northeast the reform lags behind. In a low market-based degree, the alteration of system goes slow. Products in the Northeast have been basically market-based, while the factor market is at a low maturity. This will lead to competitors lacking spontaneous inherent motive force. (ⅳ)The development of State-owned enterprises in t...