Chinese Government's Function In Property Right Institutional Change

The reasonable and effective institutional structure is an important prerequisite and fundamental guarantee for achieving economic development, including the property rights system. Whether a country can build a system or not lies in the structure of its government, because the majority of formal institutional arrangements are developed by the government. Therefore, the government's primary task in economic development is to define property rights and establish a legal system to ensure good operations in the market.In this paper the author first describes the changes in property rights system in general. The government can provide a fair, safe system environment for property and constraints interests by the use of legality and constitution, and achieve the redistribution of wealth and income equity through restructuring. With the continuation and development of property rights system, the government could be based on their own interests to choose the form of property rights, which makes a negative role in the system of property rights. Establishing political system and constitutional order under binding mechanisms can make government play a better role in property rights system, and limit its negative effects. Then we discuss the problems in our property system changes, respectively involving three aspects: State-owned enterprises' property rights, rural land reform's property right, and private enterprise property rights. And give some advice on how the government plays in effective ways to promote the reform and construction. State-owned enterprises' unclear property rights result for the unclear distribution of benefits and responsibility. Therefore, the government should cut the link with the enterprise, and speed up to build the modern enterprise system. Through further adjustments in the structure of property rights of enterprises, government can restrict and constraint intervention on business assets.Government should achieve a more reasonable definition of the right to protect collective rights and farmers' benefit, and allow farmers to transfer the right of property. Considering the property rights system for private enterprises, the government should improve the system of legal protection, protect private property rights. Government should make a plan for private enterprises'economy development, and protect the legal interests and equal competition right.Finally, make the summary of the whole paper, and give some specific reform proposals for our property right institutional change. On the macro level, we analysis the government's general role in property rights institutional change, and how to deal with the practical conflicts with the realities.