Study Of Economic Law Of Merger Of State Enterprise And The Intervention Of Government In Chinese Economic Transformation Era

Transformation era is necessary for most of developing countries including our country that is establishing and developing market economy. There are three parts in the article:In the first part, I think there are two traits during the period: one is the inheritance of economic system; the other is the domination of country power. Because of these reasons, the merger of state enterprise cannot keep away from the government, which lead to a lot of worrying problem.When the Enterprise Merger Temporary Bill has been past in 1989, the enterprise merger which under the control of government has began, and continue up to today intensely. The state estate management committee of State Department goes on enforcing the control to the merger of state enterprise during these two years; the aim is to improve the overall arrangement of enterprise and adjustment of structure. They confirm the idea that there are 21 kinds of industry that need to be adjusted, including metallurgy, automobiles, large equipment, trade etc, and the merger has been complemented in 36 enterprises. Obviously, the tide of merger is coming which is led by the government, but many people suspect the effect.The intervention of our government to the merger of state enterprise results from the legitimate problem of power intervene the private right in the market. As every coin has two sides, the intervention also has advantages and disadvantages. It may bring a threat to the economic development, at the same time, it also may pose benefits. The market economy means the trade between individuals, every businessperson who takes part in competition of market and be regulated by the value regulation, of course including the state enterprise, act of which the essence is running to the private right. They don't need the intervention of power, but at the aim of protection.