The SOE reform in China/周大勇(21)
What is more, the government plays continually an important role in the whole process. At one side, it should bear relative responsibilities in the course of reform, that is, to undertake the cost demand of the reform. Reform should not be a free lunch either for new operators or owner of the reformed assets nor for the government. At another side, to create a suitable circumstance for the reform is also very important, the government should strengthen the construction of a fair market and relevant regulations, because even under private ownership system, the questions such as information asymmetry, encourage incompatible, and responsibility reciprocity also exist. So that enterprise operator can also infringes the owner, if there were no a competitive market, which reflects abundant information of the management of enterprises performance.
Whether we can strip out the social burden of SOE, also depend on a series of changes of external environment condition. If the problems such as price twist, industrial structure twist and undeveloped labor market cannot be dispelled through macroscopically policy reform; property transition can only cause inflation, unemployment and a series other problems.
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