Study On Chinese State-owned Enterprises Business Scope

Although Chinese state-owned companies are nominally state-owned enterprises of China’s citizenry, but in fact their profits have not been shared by the people. Theref ore, its cannot be recognized by the people, and have become the object of criticism. The third Plenary Session of the18th CPC Central Committee decided to increase the p ercentage of profits that turned over to the state to30%by2020. More of these profi ts will be used to protect and improve people’s livelihood. Although30percent is still far from the expectation, but it should still be regarded as a progress. Hopefully the situation that profits going to state-owned enterprises will gradually change. The profit s of state-owned enterprises should belong to more than a few interest groups.The first chapter from the general theory of business scope, analyzes its nature, e xtract its features such as identification function, the function of protection and constra int, publicity function, easy to regulatory functions and so on. The second chapter will explore the origin of our system of state-owned enterprise’s business scope, including the root of social and economic system and legal system. Objectively, through the hi story of the state-owned enterprises reform process at the planned economy transforme d to the market economy, describing the evolution of the way that the legislative busi ness scope of state-owned enterprises. More problems of state-owned enterprises cause d by the existing scope of business, such as grab monopoly profits over the industry, too broad business scope and against to fair market competition. Since the founding o f China, the economic system altered, the enterprise system changed. So, that is impor tant to analyze the reasons behind these aspects. Finally, refer to some typical countrie s such as the U.S., Japan, France, Britain and other state-owned enterprise in the worl d SOE governance systems experiences, such as state-owned enterprises to accurately define the scope of business, and the state capital for market operation, etc., extract b usiness scope of China’s state-owned enterprise opinions and theories, practical, legal a nd policy basis, from two levels, the economic system and the enterprise.State-owned enterprises should be managed by public service enterprises, functiona1-oriented enterprises and competitive enterprises. Public service enterprises are mainly related to people’s livelihood based enterprises, including social security funds, public r ental housing construction, urban water supply, public transportation network, municipal utilities operating resources, etc. Function-oriented enterprises are mainly complete the goal of the state, to develop ecological resources or build infrastructure, etc. For com petitive state-owned enterprises, it should be placed in the market that under the condi tions of equal competition with other economic sectors, to achieve efficient allocation of resources, division of refinement and purpose of economic growth.