Research On The Relationship Between State-owned Enterprises And The Government Based On The Perspective Of Administrative Law Balance Theory

State-owned enterprise(SOE)is an important actor in all aspects of China's politics,economics and social life.Comparing with other ownership enterprises,SOEs,whose assets are sourced from the government,have their particularities.As obviously seen,SOE is the foundation of China's publicly-owned economy,it takes the responsibilities in the operation and management of state-owned assets,generates profits and tax revenue for the government,and acts as a crucial tool whilst the government makes macro-adjustments in economy.Moreover,SOE also performs functions politically other than its economic roles.In the era of China's state-planning economy,there was “no clear line between the functions of the government and enterprises”.In terms of government-enterprise relations,SOE was fully under government administration,and all profits were required to hand over to the state.Such a situation had caused that there was no incentive and lack of creativity and innovation in the SOEs,which had further resulted in large financial losses,and put the national economy on a heavy burden.Given that,in the process of building up a socialist market economy since China's opening up,China has undertaken several rounds of SOE reforms.However,SOEs are still faced with a range of issues today,such as challenges of imbalanced condition of right,efficiency adjusting,development environment,and internal governance.In the process of SOE reform over the past 40 years,the government and enterprises always looked for solutions from western economics and management theory in regard to SOE reform and government-enterprise relationship,though rarely considered it from the perspective of law,especially administrative law.The relationship addressed by the administrative law exactly deals with the relations between the administrative subject(government)and the administrative counterpart(enterprise).It could provide with a new perspective when we analyze the current relations between the government and enterprises,and the dilemmas of SOE reform by using the administrative law.The "Balance Theory" in the administrative law is applied in this article so as to analyze a new model of government-enterprise relationship which is under a state of "government-enterprise balance".The "relationship" perspective of balance theory,on double-way restriction and incentive program,the compromise,the dynamic equilibrium from multiparty game and other key perspectives provide a new way of thinking while building a new type of government-enterprise relationship.This article consists of five sections as follows.Firstly,it presents the background,significance,content,idea,methodology,etc.of this research,and examines an abundant amount of academic literature on the relationship between government and enterprises.Secondly,this article analyzes and explains the theoretical basis of the application of balance theory in administrative law to the study of government-enterprise relationship,and further illustrates the theory in terms of its main content and theoretical applicability.Moreover,starting from the basic view of the balance theory,this article further suggests that the government-enterprise relationship needs to achieve a balance between rights and obligations,efficiency and fairness,freedom and control.Thirdly,it analyzes the current status of the relationship between China's SOEs and the government,explains the role of SOE in both economic and political dimensions,and reviews the reform process of SOE in China.Fourthly,it analyzes the many difficulties encountered by the government-enterprise relationship during the reform of SOE in China,and explains the causes and problems from four aspects,which are the challenges of imbalanced condition of right,efficiency adjusting,development environment,and internal governance.Finally,from the perspective of the balance theory in administrative law,suggestions were made in this article for the purpose of solving the four challenges and building a new type of government-enterprise relationship.One suggestion is to introduce a classified SOE law,transform to a service-oriented government,and clarify the administrative level of the SOE cadres,etc.The second is to address the challenge of efficiency adjusting,which proposes to realize a two-way incentive program for both government and enterprises and establish of a long-term incentive mechanism.The third is to address the challenge of development environment,which recommends to alleviate the policy burden of SOEs and eliminate the discrimination between enterprises of different ownership,etc.The fourth is to address the internal governance challenge,which proposes a balanced relationship between the "old three meetings" and the new "three meetings one layer".