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What are the disadvantages of state-owned enterprises?
The most fundamental drawback of state-owned enterprises in China is that the Party is a political enterprise, which makes the enterprise structure and organs the same, and the habits are basically the same as those of government organs:

1. Administrative appointment of enterprise leaders. As we all know, the leaders of large state-owned enterprises are usually above the deputy division level. When appointing, they don't consider market experience, management ability and management methods, mainly depending on whether they are reliable. As a result, many state-owned enterprises are simply small governments, and promotion, praise, commendation and punishment are the same as those of the government.

2. The organization is bloated. Affected by some historical reasons, the wages and benefits of state-owned enterprises are generally much better than those of private enterprises, and many of them work in vain, just taking money and doing nothing. Therefore, many business leaders will put their relatives and friends in it, and it is common to treat this kind of thing as a gift, which leads to a heavy burden on enterprises. In addition, some important positions may also be occupied by people who are not properly placed. Most of these people are uneducated and incompetent, which leads to numerous problems.

3. No sense of management. Many state-owned enterprises are monopoly enterprises, and there are basically no competitors in China. Moreover, even if the profits of the enterprise are more, at most, the bosses will pay more bonuses, which will not benefit the lower-level employees. But bosses themselves can't get enough wages, bonuses and gray income. They care more about other things. As long as the enterprise does not have too bad influence, it basically doesn't matter. As a result, many state-owned enterprises have spent decades on equipment renewal, talent introduction and management innovation, and there is no improvement plan at all. As for the competition with foreign companies, most of them are promoted by the government, and these enterprises only need to spend money to do things.

4. Lack of supervision. Generally speaking, the managers of private enterprises are mostly the bosses themselves. For their own interests, they will try their best to develop and expand their own enterprises. For a joint stock limited company, the management may be driven by performance rewards, equity incentives and other factors, paying more attention to the company's performance, and shareholders also have the right to supervise the management. For state-owned enterprises, the slogan can of course be called "government supervision" and "people supervision", but in fact, the government only changes leaders when these enterprises are too out of line, and the people can't count on it. Being able to operate efficiently without supervision is like being able to keep the toilet clean all the time without cleaning. Can you believe it?

Degree of marketization: (1) After years of reform, the market mechanism has replaced the planning mechanism as the basic mechanism of resource allocation in China, and the price signal has replaced the quantity signal as the main signal to guide resource allocation. Although there are still serious problems of disorder and unfairness in China, and people have different views on the degree of marketization in China, it is generally acknowledged that the market mechanism, rather than the planning mechanism, has undergone a qualitative change. (2) Among all countries with economic system transition, China's market-oriented transition process is relatively fast, especially compared with Russian economic transition. It is generally believed that China's marketization index or economic liberalization index is higher than that of Russian. In the practice of international trade, about 50 countries have recognized China's market economy. (3) China's economic system reform has promoted China's economic development unprecedentedly. No matter the changes of economic growth indicators or economic structure indicators, the level of economic development or social development, the progress of absolute indicators or the improvement of relative indicators, China's social and economic progress has been unprecedented since the reform and opening up.