The Strategic Analysis Of Government-enterprises Relation Reform In Chinese Transitional Phrase

Since the reform and opening up of China, Chinese economic system has been transormed gradually from the old planned economy system to socialist market economy system. Society has been developing in the transitional phrase in which all kinds of relations have been changed and reformed in order to break old order and patterns and form a new order of society and economy. In those relations, the relation between government and enterprises (especially stateowned enterprises (SOEs)) has been in the key position. Government-enterprises relation (GER) reform has been the focus in the reform of economic system and administrative system. GER reform has been carried for the purpose of lessening the control on the enterpries by government, persisting in the separation of government functions from enterprises management and enhancing enterprises vigour. GER reform has undergone three stages: streamlining administration and delegating power to lower levels; separation of ownership from management; establishing the modern enterprise system. For 30 years, we have achieved great results on GER reform, enterprises vigour has been enhanced, China's national economy has maintained sustained and rapid growth. However, on the present situation of GER, many problems are still existing in GER reform in rusult of hindering economic development. An important problem is that we haven't strategic idea to reform GER and don't put GER reform in the strategy frame of national competitivness.In the era of globalization, the competition among the nations is becoming more and more intense. How to establish the national competitive advantage and promote national competitiveness is the important strategic issue that the nations in the world are facing. Professor Michael Porter is the most famous American strategy management expert, his theory of the competitive advantage of nations (Porter Diamond Model, PDM) clarifies the relation between government and enterprises in the globalization era. The theory indicates that the industrial competitiveness based on the enterprise competitiveness is the core of the competitive advantage of a nation, emphasizes the government's functions on forming the competitive advantage of a nation.The thesis based on the PDM theory fundamentally finds the absence of strategy in GER reform by analyzing the history of Chinese GER reform, furthermore provides four strategies (general strategy; service strategy; innovation strategy; global strategy) to reform GER combined with the national competition characteristics in globalization era.