Discussion Of The Direction Of Reform Of State-owned Commercial Enterprises In Chengdu

The government plans to develop Chengdu to be a commercial center. However, the reforming process of the state-owned commercial corporations goes slowly. In recent years, many foreign capital commercial corporations have started their business in Chengdu; private economy has also developed very fast in the region of the commerce and trade. All these have brought great difficulties and threats to the development of the state-owned commercial corporations. It is urgently needed that the state-owned commercial corporations to escape from the plight by reforming. Starting from the practical conditions of the state-owned commercial corporations in Chengdu, this paper analyzes the major problems and difficulties arising in the process of reforming of these corporations. It also explores the causes of these problems from different perspectives. Suggestions and solutions to these problems are proposed correspondingly. The paper also predicts the foreground expectation of the commercial corporations after reforming. It attempts to probe into the strategies to strengthen the state-owned commercial corporations, carry out good operation and confront the great development in the West. (The state-owned commercial corporations concerned in this paper don't include state-owned commercial stock corporations) The first part is concerned with the basic situation about the state-owned commercial corporations. Under the planned economy system, the commercial corporations have made great contributions to the development of the local economy. In market economy, these corporations have met great operation difficulties because of the sluggish reforming process. In 1998 and 1999, the percentage of enterprises in loss state is quite high; some were actually in stop or half stop production state. The instability factors lies in this difficult situation. The second part describes the difficulties that the enterprises have met during the reforming process. Solutions to these problems are provided. The reasons for current situation of the commercial enterprises are complex. There are both historic at reasons and practical problems, both systematic reasons and the policy matching problems, both external reasons and internal management problems, both common problems that state-owned enterprises have met during the process of reform and individual problems concerned with commercial industry. All these problems have combined with each other and contributed to the current situations. With the help of practical cases, this part analyzes three major difficulties (the concepts of the leader level, debt burden and redundant personnel) and their causes of formation. Based on the analysis, the suggestions and advice are proposed. It also probes into the problem about employee's holding shares. The end of this part analyzes the limitations, uncertainty and risk of the future after the reforming of commercial enterprises. With the perspective reform measures, the limits of reforming are obvious. The radical problem about the lack of the owner of state-owned capital has not been solved all along. Therefore a series of relevant problems can not be eradicated. However, the external environment has been changing very fast. Entry into WTO and The West Development will make future competition in commerce more vehement; the future is not good for the commercial enterprises in Chengdu. Therefore, more powerful measures must be taken as soon as possible. The third part discusses about the future and countermeasures for the state-owned commercial enterprises. The part is the most important one of the paper. According to the current situations of the state-owned commercial enterprises in Chengdu, in order to get rid of the difficulties and strengthen the competition ability, the only way to brace up the state-owned commercial enterprises is to build state-owned commercial capital holding companies and depend on collective management. First, it carries through the spirit of The Fifteenth Session and adapts to reality of market competit...