The Future Deserves Expectation: FDI and the transformation of SOEs in China
孙建钢
【关键词】FDI International Economic Law
【全文】
It is the reform and opening up that brings China entirely fresh thinking and it is the economic globalization that presents China brand new opportunities. The promulgations of a bundle of new law and regulations by both central administrations and local governments, which are regarded as necessary methods of further reform and opening up or the fulfillment of WTO commitments, have made it clear that the gateway which lead Foreign Direct Investment (“FDI”) to the transformation of state-owned enterprises (“SOEs”) has unfolded and will continue to expand in an more extensive, transparent and sound way.
The Thriving Present:
During the past two decades, the Chinese Government has spared no effort in the transformation of SOEs. Measures, such as spliting interests with management organ, focusing on some business sectors while shrinking from others and transfering state-owned shares to society, are adopted in order to propel the strategic adjustment of the layout and structure of the state economy. The introduction of FDI in the transformation of SOEs has already exerted some delightful impact on the course:
1. The establishment of modern enterprise system in SOEs. Enterprises are the subject of market economy. It should be noted that the modern enterprise system has not yet established and some historical problems still remain unsolved although the reform of SOEs is currently in the process of continuous improvements. The input of FDI has played an active role as strong driving force in the process.
2. Regulating and inspiriting the business operation of SOEs. It is widely understood that the majority of the shares of SOEs are in the control of state. This, however, gives rise to chronic problems that lead to insufficient supervision of state-owned assets, the dereliction of duty of the management organ and low benefit rate. The change of share structure brought by the FDI will inevitably spur the due performance of both boards of director and management organ so that inspirits the potential benefit and rewarding.
