From managing state-owned enterprises to administering state-owned assets

Author: Zhang Haohuan / Zhang Mingzhi / Wang Wei
Publisher:
Publish Date: 2005-08-01
Features: The theoretical and practical research on the transition of the system is a crucial premise of this book; the phased market-oriented reforms, theoretical exploration, and property rights system reforms are important components of the book's logical framework; the analysis and judgment of the four stages of state-owned enterprise (SOE) reform are key viewpoints of the book; the shift from managing SOEs to managing state assets is a novel proposition put forward in this book. The transition from managing SOEs to managing state assets represents a historic shift: the reform of SOEs within the "transitional system" perspective, the phased advancement of economic system reform, the exploration of SOE reform systems, the goal selection of state asset management, and strategic adjustments of state assets within the "transitional system." The monograph From Managing SOEs to Managing State Assets, written by Zhang Haohuan, Zhang Mingzhi, and Wang Wei and published by Social Sciences Academic Press, is the latest research of Zhang Haohuan and others on China's SOE reform issues. Since the mid-1980s, SOE reform has been the central focus of China's economic system reform and remains in the critical stage of breakthrough. The publication of this book will play a significant role in helping readers better explore and grasp the patterns of China's SOE reform.
Research on SOEs abroad typically focuses on state-owned enterprises in some developed market economies in Europe. Guided by the idea of not competing with private enterprises for profits, many Western SOEs are special organizational forms established to achieve certain social policy goals, serving as means of state intervention in the economy and addressing market failures. Their impact and contributions to the national economy are relatively limited. Due to a relatively sound overall market economy operating environment, Western scholars generally regard the clarification of property rights as a fundamental prerequisite for SOEs, with research primarily concentrated on industrial and competition policy choices, operational modes of SOEs, and incentive and constraint mechanisms for corporate executives.
The reform of Chinese SOEs has long been a key area of focus and research for domestic scholars, yielding many mature and outstanding achievements. For example, regarding the functional positioning of SOEs, some scholars argue that SOEs have special owners or representatives, special social goals, special socio-economic functions, and unique property rights organizational mechanisms. On the issue of SOE performance inefficiency, some scholars propose that traditional system SOEs possess unique characteristics different from other enterprises, namely, bearing both strategic and social policy burdens. Since reform, these burdens have not been completely eliminated, placing SOEs in an unfavorable competitive position. To protect the survival of SOEs, the macro policy environment has not been fully rationalized, a fair and competitive market system has not been well-established, and information asymmetry issues within SOEs remain unresolved. Despite efforts to align incentives with responsibilities, the desired outcomes have not been achieved.
In terms of SOE system reform, some scholars suggest that the key lies in forming an effective corporate governance structure, implementing corporate transformation for SOEs, and achieving diversified ownership as a prerequisite. By carefully reviewing the current state of domestic and international research on SOE reform, it is evident that due to differences in institutional frameworks and the positioning and functions of state-owned economies, Western scholars' research findings on SOEs are often far removed from China's national conditions. For a long time, domestic scholars have conducted systematic and in-depth research on issues such as the separation of government and enterprise () and the separation of government and capital (), but much of it has remained within the conventional framework of "managing SOEs" (———), necessitating further in-depth exploration. Since the 16th National Congress proposed reforming and improving the state asset management system, numerous writings have emerged, but many still remain at the level of explaining the policies of the 16th National Congress and the Third Plenary Session of the 16th Central Committee. Both in terms of theoretical depth and innovative strength, further progress is needed.
Building on previous research, this book proposes the proposition of "From Managing SOEs to Managing State Assets" and aims to achieve innovative progress in this field. The book presents its research perspectives and viewpoints in the following aspects:
First, it proposes the proposition of "From Managing SOEs to Managing State Assets." Through an in-depth analysis of the historical process of China's SOE reform, it reveals that the reform has failed to truly advance to a deeper level because the core of SOEs—state assets—has not been treated as a key element of reform. Most policy recommendations have revolved around how to better "manage SOEs," without adequately addressing the relationship between the government and SOEs. The book argues that the further breakthrough in SOE reform can only come from a fundamental shift from "managing SOEs to managing state assets." In fact, the Party and the state have issued a series of policies on the reform of the state asset management system, and recent academic discussions have also been extensive, effectively validating the approach of this research topic. The book takes the reform process of SOEs as the main thread from the perspective of the phased reform of SOEs, with the reform and improvement of the state asset management system as the core content, thereby unifying all aspects of SOE reform research. This approach offers certain theoretical innovations.
Second, centered on the proposition of "From Managing SOEs to Managing State Assets," the book constructs an analytical framework for the historical evolution of SOE reform. As a system context, the uniqueness of the transitional system serves as both the practical starting point for reform practices and the logical starting point for theoretical research. As a special economic organization, SOEs exist in many countries worldwide. Due to differences in institutional frameworks and the positioning and functions of state-owned economies, the market structures, operational modes, and state control and management of SOEs vary significantly. Building on general principles, the book seeks to identify the uniqueness (nature, function, and positioning) of China's SOEs, which forms the foundation of its arguments. As an irreversible trend, the deepening of the new economy and economic globalization will inevitably bring significant impacts on the innovation of China's SOE reform, thus becoming the temporal backdrop of this research. By analyzing the 20-plus years of SOE reform in a vertically evolving phased manner, the book adopts a basic approach and perspective. From this, the three dimensions of the analytical framework are formed: the "transitional system," "the nature, function, and positioning of SOEs," and the "temporal background." The historical logical approach constitutes the basic methodology of the book, upon which it proposes the overall strategic framework for SOE reform, including "repositioning SOE functions," "restructuring SOE asset structures," "innovating the state asset management system," "reconstructing SOE competitive advantages," and "building the survival foundation of the national economy." This contributes to refining the overall theoretical framework for the innovative development of China's SOEs.
The book also offers some new insights into the reform of the state asset management system. Within the overall strategic framework of the strategic adjustment of state-owned assets, it proposes that in certain fields, owning valuable state assets is more meaningful than operating SOEs, and thus operational state assets and non-operational state assets must be classified and managed separately. It further suggests that during the process of reforming the state asset management system, due to current constraints, the "classified property rights" between the central and local governments serve as an intermediate stage toward "classified ownership." It also proposes reform measures for this stage. The book argues that China's SOE reform has now entered its fourth stage after the stages of decentralizing power, transforming operational mechanisms, and establishing modern enterprise systems: the establishment of the state asset management system. This argument helps clarify and resolve the core issues of SOE reform, making people realize that the reform must further touch the core of SOEs—state assets—and that the key to further deepening the reform lies in the fundamental shift from "managing SOEs to managing state assets." This policy recommendation is valuable.
The proposition of "From Managing SOEs to Managing State Assets" is a new concept and represents a major transformation in government functions. Therefore, research on this issue must continue to deepen in line with practical progress. The publication of this book will play a positive role in promoting in-depth research on SOE reform. It is hoped that the authors will continue to produce more innovative achievements in the future.