Research On The Difficulties And Countermeasures Of Disposing State-owned Zombie Enterprises In City A

It focuses on supply-side structural reform as stipulated by the country 's Thirteenth Five-Year Plan.Since the 18th National Congress of the CPC,"cutting overcapacity"has become an important task for government departments to improve the structure of state-owned assets.In particular,it is critical to clear and reorganize the zombie enterprises among a large number of state-owned enterprises.The state-owned zombie enterprises not only devour plenty of social resources,but also have a severe impact on economic development.How to eliminate the state-owned zombie enterprises is an important issue for government departments in all regions,including A City.This paper expounds the measures that it has taken to dispose the state-owned zombie enterprises and its achievements in such disposal by interviews with the representatives of several government departments(e.g.courts,administration for industry and commerce and tax authority)and those from competent authorities or group companies in charge of the state-owned zombie enterprises in A City.It shows that when clearing and reorganizing the state-owned zombie enterprises,a range of difficulties are still,including:(1)it is difficult for the state-owned zombie enterprises to get out of trouble through mergers and reorganizations;(2)it is difficult for the state-owned zombie enterprises to achieve innovation-driven development;(3)it is difficult for the state-owned zombie enterprises to cancel tax registration;(4)it is difficult for the state-owned zombie enterprises to cancel business registration;and(5)it is difficult to eliminate the state-owned zombie enterprises through judicial channels.The difficulties above can be attributed to lack of quantifiable system for identifying the state-owned zombie enterprises,limited space for government departments in independent policy making,and defects in the existing laws(e.g.Enterprise Bankruptcy Law).Therefore,it is needed for government departments in A City to create some effective ways to cope with state-owned zombie enterprises by drawing lessons from successful disposal of state-owned zombie enterprises in other Chinese cities.To dispose of the state-owned zombie enterprises in A City,the paper proposes the following policy suggestions,including:(1)establish a professional platform to clear and dispose of state-owned zombie enterprises by different industries;(2)make full use of the joint conference system to strengthen the connections between governments and courts and increase local financial support for clearing and closing the state-owned zombie enterprises;(3)improve the system of bankruptcy administrator to eliminate the state-owned zombie enterprises through judicial channels;and(4)introduce social capital to help the state-owned zombie enterprises in dire straits to become profitable.