The SOE reform in China/周大勇(17)
Based upon above reasons, China took a gradually reform strategy, in which the SOEs played an important role to maintain a safe social and economic reform in such a big country. However, if there were not further reform, the problem of the SOEs will lead to discontent conversely.
4. Argue of some reform plans and suggestion
At earlier time, in order to meet the development of the reform, some economist held the view called “depoliticization”, it means reducing the influence from the authority step by step, therefore to prevent it from making manageable decisions for SOEs directly as well as to cut down the interference from the Party. Such kind of plan suggested three steps, separation of enterprises from the government, establishment of mechanisms for selecting managers and release from the social responsibilities.
As we have observed, the reform followed partly this kind of theory. Unfortunately, such suggestion focuses only on management of SOEs, hence it is not the end solution. Keeping with this way, then there are rare possibilities to carry out further reform by SOEs themselves automatically and the SOEs performance will not turn better dramatically. Because government does not want to voluntarily give up their right in the SOEs. Even the government officer has still benefit from the enterprises; they can not only usually become tribute from the enterprises, but also write off some personal expense in the enterprise. Even if the enterprise falls in bad situation, they benefit from helping the enterprise to apply state allocation or from obtaining a piece of the property through the disposal of the enterprises properties.
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