| Township enterprises emerging in China have passed a difficult and twisted route, showing their great viability. With the development of China's market economy and the deepening of economic reforms, township enterprises face a buyer's market with insufficient demand, requiring them to readjust strategically structure and second time pioneering. The difficulties township enterprises confront today focus on the lower profitability, arising from the economic system, characterized by blurring of property right ownership, no separation between government and enterprises and poor management. By further deepening economic reform and creating a modern enterprise system to make township enterprise's have a institutionalized, regulated and stable development, is a great issue needed to be solved not only significant to Chengdu but to China. Also, this issue is of vital importance to the development of Chengdu's overall economy. This paper consists of four parts focusing on the discussion of effective ways to initiate the second time pioneering. Part One describes the current situation of Chengdu township enterprises. It points out that Chengdu township enterprises have achieved a large scale, with the constant increase of economic aggregate, and become a major part of Chengdu' s rural economy and important part of whole city's economy. During the process of the re-pioneering, it has marked great achievements in the following six aspects. 1. Improvements have been made in the restructure of business ownership.2. Multi-business grows with the vigorous development of some superiors businesses.3. Improvements have been achieved in the structure of products and quality.4. Business size is expanded.5. Vigorous development is achieved in those externally oriented businesses.6. Modes of operations of business are changed to market-oriented. In the second part of the paper, the necessity of re-pioneering of Chengdu's township enterprises is explored.1. With the form of buyer's market, competition becomes more and more intensified. It is necessary to have re-pioneering of Chengdu's township enterprises so as to gain competitive advantage.2. With China's entry into WTO, the re-pioneering of Chengdu's township enterprises is necessary so as to gain market shares in global economy.3. With the deepening of state-owned enterprises, Chengdu's township enterprises have to be re-pioneering so as to increase their competitiveness.4. The further development of Chengdu's economy requires Chengdu's township enterprises to have a re-pioneering.5. The transformation of rural labor force and the realization of increasing peasants' income require Chengdu' s township enterprises to re-pioneer.6. The transformation of ruralities to industrialization, urbanization and modernization require a rapid development of township enterprises. The third part of the paper details the major obstacles Chengdu's township enterprises in the realization of re-pioneering. They are:1. Indistinct property rights ownership and poor business system;2. Weak innovation and R&D function resulting in poor quality;3. Extensive management and low level scientific decision-making;4. Unfavorable external environment and improper external factor intervention. The paper stresses that indistinct ownership and poor business system are fundamental factors that hinder Chengdu township enterprises from developing. Innovative ways are necessary to tackle these problems otherwise the development of township enterprises will be halted. The fourth part of the paper points out that Chengdu township enterprises are at the critical moment in terms of innovation of new system, restructure and re-pioneering. The re-pioneering of township enterprises should go after the following route:1. Continuing to reform to solve the indistinct ownership by means of system innovation so that a solid foundation of the further development is laid down. 2. Emancipating the mind to find out the new bases for economic g... |
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