China's State-owned Enterprise Competitiveness Research

As the development of economic globalization is accelerating, and theworld economy, affected by the financial crisis, is recovering, China’sstate-owned enterprises are facing more and more complex circumstances,more and more opportunities that are available, but also more severechallenges and more intense competition. Only by cultivating andenhancing their competitiveness can they achieve their own developmentand a better and faster integration into the wave of global economic. Asstate-owned enterprises occupy a dominant position in China’s economy,the study of the competitiveness of state-owned enterprises has a certainpractical significance for analyzing of the development status of China’sstate-owned enterprises, exploring new development ideas.The first question to analyze the competiveness of state-ownedenterprise is what competiveness is, which factors affects it and whatabout the competition status of state-owned enterprise. So this papersummarizes China’s state-owned enterprises reforming process and theresearch of scholars at home and abroad on competitiveness at first, andthen analyze the competiveness of China’s state-owned enterprises,combining with the actual development of the state-owned enterprises inChina. At present, China’s state-owned enterprises has basically realizedthe transformation of operational mechanisms and steady economic benefitsgrowth, the modern enterprise system of state-owned enterprises andstate-owned assets supervision and management system is being completed,the strategic layout of state-owned economy is being rationalized, moreand more large powerful state-owned enterprises group continue to emerge.However, we should not neglect that there are still constraints inenhancing competitiveness of state-owned enterprises, the previousdevelopment of China’s state-owned enterprises before is largelydependent on the government policy support and monopoly, but in a growing market economy today, state-owned enterprises can’t achieve long-termdevelopment relying solely on these advantages, the state-ownedenterprises must enhance their competitiveness and strength in order tomake sustained and healthy development, to truly participate in the worldcompetition and form a competitive advantage. There are many constraintsin enhancing the competitiveness of state-owned enterprises, such as noclear development goal of state-owned enterprise, solely relying onmarket dominance, lack of the ability of independent innovation, seriouscorruption, mixed relationship between government and enterprises, thereadjustment of the economic structure gradually slowing-down and “thestate advancing as the private sector retreating” phenomenon in certainfields. To solve these problems, this paper offered several correspondingproposal from below aspects: enhancing the capability of independentinnovation, cultivating own core competitiveness, establishing of amodern enterprise system, promoting the merger and reorganization ofenterprises to enhance the competitiveness of state-owned enterprises.