Study On Ownership Reform Issues Of State-Owned JC Enterprise

The reform of state–owned enterprise have been key link of reform of Chinese economic system from the 1980s.The education circles ,business circles and political circles at home and abroad have paid more attention to this reform, it has influenced significantly on Chinese economic system,government behavior model and social values, and is a important milestone that china went into market economics. The reform of state–owned JC enterprise had typical study significance in present reform of having historical meaning, because JC factory was an old,pure state–owned and pivotal enterprise in its district, had primary school,middle school,kindergarten,hospital ,technical school ,cable–television station and police station, reform is very difficult, it was a very model. I have undergone whole reform process of the JC enterprise,it is easy to collect the most direct first material, to note truly coming to realize, and to refine out reform model of the JC enterprise.There have been many dispute on the problem of Chinese state–owned enterprise reform, especially sine 2004 professor Xian ping Lang has leaded it into high tide, the disputed focus and core is foundational thinking and strategy choice of state–owned enterprise reform. At the moment ,politic bankrupted reform of the JC enterprise was doing, its reform involved over content of ownership,property rights and corporate governance. Since the late 1980s the government has adopted some reform ownership resources about economical operate mechanisms , being independent in management on state–owned enterprise, but state–owned enterprise was independent in management or relative commodity producer ,had not far reached. In the late 1990s state–owned enterprise could carry out stock system, which replaced state–owned system , set up stock economics system that public ownership was major, public stock include state stock, legal person stock taking public capital as major,employee- stock collective and co–employee stock etc. Reform of stock system that was carried out actually touched to the problem of ownership, Chinese state–owned enterprise property rights generally define as residual claim and residual control right. The ownership reform may divide it into final right and legal person right,the former belongs to state,its basic right is final decision right for property,and legal person has deny right with legal property,while,the final property rights can not transact,legal right define legal person to possess and use for property. Reasonable ownership relation of Chinese state–owned enterprise involve two hands:on the one hand,it is the relation of enterprise between market and plan departments under the Party Central Committee,on the other is hand incentive mechanism. Enterprise both face to the former and accept the later to manage,find a balance point at both,raise encourage by money wages,and also advocate public moral of altruism. The enterprise assets should be classify in reform of state-owned enterprise, and appropriately distribute to different holding main part according to every kinds of assets,so as to realize the diversification of property rights ,and thoroughly solve cycle problem that the power of decision of enterprise regain and put down. A great part of assets of the enterprise are not to be production asset,for example school,hospital, kindergarten and employee house etc., assets are classified as follow, some assets come off, some assets right assign to old-age pension,medical fund department and soon on for social guarantee character holding, that not only help state–owned enterprise to break up"iron bowel","iron wages"and"iron chair"of employee, but also realize diversification of stock right. At the same time corporate governance is also quite important, it is to solve responsibility , power and interest relationship among manger ,shareholder ,board of directions and stakeholder. Human resource capital of employee bear residual risk as currency capital buying a share, so it should equally share residual interest too, that it can promote inner employee with enterprise to joint destiny community ,and will make employee more inputting and efforts to develop in a long direction favorable to enterprise. Employee shareholder is a kind of inner form of state–owned enterprise reform, which the Western world enterprise take too, China should adopt yet as a socialist country, but employee shareholder dispersed is quietly a kind of unstable ownership structure, later restructuring of ownership will appear, it may injure employee right again .The second reform of JC company has entered a new stage, it must pursue standardize of corporate governance, set up system of board of directions according to international practice, and depend on board of directions to govern enterprise.While state–owned JC factory reformed in 2005,it was confronting with background of Chinese transition economy, Chinese ideology environment appealed complicated situation, in real life specially in practicing of state–owned enterprise reform, people heard all kinds of different voice, form large aspect, there are two kinds of voice ,this is two kinds of different theory guiding reform:One is socialism ownership; another is ownership of new liberalism. When the JC factory used politic bankruptcy to carry out reform, a famous feature was to cut off communication among enterprise and employee with plan economics, and package history problems left were solved, the JC factory was reformed to form of employee buying a share, thus come into reform contents with Chinese characteristics of transition about employee identity,social guarantee combining track,paying for employee′settlement allowance and diversification of enterprise ownership. By way of double transition, which was transition of ownership and employee identity, it carried out basically according to socialism ownership, ensured steady transition and employee stability; as was called the first reform, which formed reform model of Chinese JC factory, called gradual reform. The JC company has appeared many problems in operating about ownership structure ,efficiency and equity,difference between poor and rich,safeguarding employee rights and main part of employee being brought up middling income stratum within two years, those need to be solved by the second reform.Ownership of Chinese state–owned enterprise carry out reform practice of diversification and socialization,as is beneficial to set up rugby-formed social that is full of international competition. By the gradual practice of the JC factory under the guiding of socialism ownership, this paper has pointed out the problem that appeared in the first reform process, By JC company to be acquired fulfilling the second reform, it will realize modern ownership structure of diversification and socialization of ownership, and can fully take human as basic, respect everyone democratic and economic rights. Employee will actively joint to lay a foundation in order to solve many problems of ownership structure ,efficiency and equity,difference between poor and rich,safeguarding employee right and main part of employee being brought up middling income stratum. Meanwhile point out the problem in the first reform, the paper has put forward feasible thinking and the way to deal with situation, further revised and perfected plan of enterprise reform to provide some theory and authentic proof foundation for JC company ,and then enriched and perfected reform theory of state–owned enterprise.