Reform Of State-Owned Enterprises: A Personal Prespective

The essay, by analysis of state-owned enterprises (SOE) functions, affirms SOEs' non-replaceable role in socialist market economy with Chinese features.As the enterprises' reform arrived at toughest phase, there are tow opinions take shape towards SOE's reform. One persists in, that the state-owned economy system should step down from the market economy stage by overall reform on the SOEs, being privatized & run by individuals. While the other insists on that, SOEs could also be brought into prosperity without proprietorship reform to it. But for me, neither is applicable. The essay stresses, that the purpose for SOEs' proprietorship reform is to maximize the column role of it in state economy, by vitalizing & flourishing. In this case, the equity participation by staff in the SOEs—Employee Stock Ownership Plans(ESOP), should be encouraged in the SOEs' reform. This way, the equity constitution, being controlled by the state, while participated by all staff, shall not only ensure the commanding position for public-owned economy, but also hit the target of multi-element proprietorship; furthermore, building up a incorporated enterprise management system applicable for SOEs' features.As for previous SOEs' management system, by comparing & analyzing, the defects & unsoundness lied in it shall be searched out. Moreover, under the basis of proprietorship structure and, in the light of SOEs' features, we shall explore a new model for SOEs' management system—enterprise director (manager) governing under the superintendence of CPC committee; by which, seeking for the optimum option for the SOEs management system, instead of corporate entity management system.Being based on establishing SOEs' proprietorship constitution & enterprise governing structure, the essay discourses the micro-revitalization to SOEs, as well as the leaders to the SOEs, the key to the revival; moreover, the leaders' election, motivation & supervision. As Known to all, the way of coming into being the leaders is the key to select the excellent leaders for SOEs. Meanwhile, the effective supervision system & long-effctive motivation system shall also be established for SOEs' leaders.In addition, the essay further discourses the rolles of enterprise management committee, CPC committee, staff (share-holder), superior governing body, people's congress & public opinions, especially the media shall play in SOEs' supervision. That's to say, the supervision & assurance system for SOEs shall be brought into soundness & integrity by systemization.In the meantime, SOEs shall give a full play to enterprise CPC committee, as the political core, in great decision-making & effective supervising operation.By Employee Stock Ownership Plans(ESOP), the SOEs' staff shall be turned into the actual host from nominal host. By which, the enterprises staff, being authorized by Big Share-holder—government, shall practice some of its functions, solving the worldwide problem—Control by Insiders, in corporation management. In that case, the Little Share-holder, enterprise staff, concerning about & supervising SOEs consciously, shall play an important role in the corporation management. Furthermore, the staff's wisdom & energy, due to activated enthusiasm, shall be dedicated to their SOEs on their own initiatives.