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The SOE reform in China/周大勇(14)
Among above aims of SOE, expect the last one, the others are all non-commercial aims. If the country wants to realize these non-profit aims, it has to scarify some benefits to carry out the policy, and to fulfill the demand of social stability. In another word, if the government wants to pursue non-profitable goals, it must give up or decline the request of profitability, because the two sides are contradictory. On the contrary, if SOE pursue the commercial target, it should get rid of the burden of those non-commercial missions. There is no way to catch two birds by one stone.
Yet, the Chinese government expected not only to maintain profit by means of emphasizing the autonomy through the reform of the SOEs, but also to maintain the SOEs as government’s tool to settle urban surplus labors, to gather more revenue and to provide the public products. SOEs have to pay more tax, have no right to dismiss personnel, even a lowest range worker, besides, they have to accomplish the plan of authorities or to supply some kind of product to the government without repay in order to meet the request of the state beneficiation. These double roles of SOE determine that the SOEs are unable to concentrate on profitability.


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