The Provincial State-owned Enterprises Strategic Withdrawal From

The number of provincial state-run enterprises is an important part of state-run enferprises, but the condition of a lot of them is not satisfactory. From the angle of history, it is the system and and management formed by planned economic system that hareresulted in this condition. Among the causes, the unreasonable structure of companies and debts caused by unhealthy investment policies, which have led to irrational investment, and too many workers all contribute to the difficaltSituations now. this paper, beginning with the analysis of the unreasonable structure of companies formed by traditional system, points out that this unreasonable structure has resultedm in the change of life cycle in state-run enterprises, and this change brought about by irrational investment has done harm to state-run enterprises. It is this harm that has led to great difficulty of large and medium-sized state-run enterprises.This paper suggests the way out to reform to solve the difficulty, that is how to withdraw with the lowecf cost (both industrial and social) and reduce the loss of state assets by positive flow.Finally, the paper analizes the case of Hunan Packing Company in order to guide provincial state-run enterprises in their reform to get rid of difficulties by analysis of the strategy of "forward and backward".