A Sate-owned Enterprise In Chinese Marketization Procedure

Different from those western original enterprises of capitalist countries thatown private ownership of market economy, and those Russian enterprises that turnedentire state-owned structure into fully market-oriented economic system, China’sMarketization transformation is based on the existed political system and theplanned economy system. So far, in the process of modernization, marketizationcould be divided into at least three types.Scholars at home and abroad are appealed to Chinese specific market transition.Eyal, Szelenyi, and some other scholars argued that Chinese market economytransformation is from the bottom to the up. However, China’s market is not assimple as what the scholars like Eyal, Szelenyi, and others have argued. From theperspective of history, China’s market-oriented reform began from Chinese ruralareas, but the real hit to the traditional plan system was from the reforms ofstate-owned enterprises in big cities. Thus the observation of the marketization ofChina’s transition and judgment should firstly focus on the evolution process of theevolution of the system of units since the evolution of the units is affected by theevolution of market-oriented transformation. Chinese market-oriented reform startedfrom the small and medium-sized state-owned enterprises. After enterprises took thepolicy of “retain the large, release the small,” the enterprises related to nationaleconomy and state-owned enterprises became more powerful and could not beinvolved with any other enterprise. A large number of small and medium-sizedenterprises joined the trends of market or has even swallowed by big enterprises.Between the two forms, however, there is another kind of enterprises that arestate-owned enterprises which are marginalized. These enterprises do not haveenough competitiveness, effective power, or any specific feature. At the same time,they have lost the historical opportunity of market-oriented reforms. They do nothave exclusive resources of economic status, institutional protection nor the right to effect price of products. Their technology is not protected by the nation and theyhave not formed any community of interests within the organization and technicalcommunity. Such companies can watch as the intermediate form of state-ownedenterprises. This kind of enterprises is defined as intermediate form of state-ownedenterprises in this study. What is the meaning of the existence of this kind ofenterprises? How did these enterprises come into being? What are the effects ofthese enterprises to Chinese market transition?To answer the above questions, based on the transition of Chinesemarketization, the property right of Chinese transition and the recourses in this fieldthat have already existed, this paper would focus on the case study of FushunAluminum Factory. From the perspective of the property right of products,technology, units, and this thesis would analysis the rules of employment ofresources, technology characters and the changes of units. In the conclusion part, asummarize of intermediate form of state-owned enterprises has been made toenhance people’s understanding of Chinese marketizaition.