The SOE reform in China/周大勇(13)
3. The reasons of SOE problem behind
According to above, after 20 years reform, China has got both achievements and still problems in SOE sector. Why those defects of SOE still exist and can’t be gotten rid of in keeping with the reform?
From 1978 on, the Policy of CCP has been concentrating on mainly two missions, one is how to manage the SOE and make the SOEs adapt to the market economic, two is how to ensure a stable social situation during deeper reform.
Here is a basic question need to be answered but always neglected: Why exactly need we have stated-owned asset in market economic country? What is the aim to manage SOEs? The empirical answer to this question is, if a state are engaged in operating asset, it has usually following aims:(1) maintain public ownership in order to ensure the equity in distribution;(2) treat SOEs as the main instrument to realize industrialization;(3) ensuring the state control in strategically economic department; (4) try to provide more employment chance; (5) ensure the tax and state revenue; (6) provide public products and services which the private economy hard to arrange; (7) prevent natural monopoly from intervening the market and (8) try to maximize the profit.
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