Disadvantages:

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. Influenced 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 for nothing, 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?

Reform direction:

By 20 10, the goals of the reform and development of state-owned enterprises are: to meet the requirements of two fundamental changes in economic system and economic growth mode and to expand opening to the outside world, to basically complete strategic adjustment and reorganization, to form a more reasonable layout and structure of state-owned economy, to establish a relatively perfect modern enterprise system, to significantly improve economic benefits, to significantly enhance the ability of scientific and technological development, market competitiveness and risk resistance, and to play a leading role in the national economy.

To promote the reform and development of state-owned enterprises, we must adhere to the following principles:

(1) With public ownership as the main body, the economies of various forms of ownership develop together. Adjust and improve the ownership structure, actively explore various forms of public ownership, enhance the control of the state-owned economy in the national economy, and promote fair competition and common development of all ownership economies.

(2) Strategically adjust the layout of state-owned economy and reorganize state-owned enterprises. Efforts should be made to improve the whole state-owned economy, promote the rational flow and reorganization of state-owned assets, adjust the layout and structure of the state-owned economy, actively develop large enterprises and enterprise groups, and liberalize and invigorate small and medium-sized enterprises.

(3) the combination of reform and reorganization, transformation and strengthening management. To meet the requirements of market economy, we should focus on changing the operating mechanism of enterprises, improving the overall quality of enterprises, and building a micro-foundation for industrial structure optimization and economic and efficient operation.

(4) Establish a modern enterprise system. Realize clear property rights, clear rights and responsibilities, separate government from enterprise, scientific management, improve the system of decision-making, execution and supervision, and make enterprises become legal entities and market entities that operate independently and are responsible for their own profits and losses.

(5) Promoting scientific and technological progress of enterprises. Strengthen scientific research and technological transformation of enterprises, attach importance to scientific and technological talents, promote the integration of Industry-University-Research, form a technological innovation mechanism and take the road of intensive and sustainable development.

(6) Strengthening enterprise management in an all-round way. Implement scientific management, strengthen basic work, improve management, improve efficiency, implement various distribution methods with distribution according to work as the main body, and form an effective incentive and restraint mechanism.

(7) Establish a competitive mechanism for the survival of the fittest. Implement projects to encourage mergers, standardize bankruptcy, divert laid-off, reduce staff and increase efficiency and re-employment. Rely on all forces to expand employment and ensure the basic livelihood of laid-off workers from state-owned enterprises.

(8) Coordinate and promote various supporting reforms. Transform government functions, establish a clear management, supervision and operation system of state-owned assets, and ensure the preservation and appreciation of state-owned assets. Strengthen the construction of legal system and maintain the order of market economy. Improve the social security system. Help enterprises to increase capital, reduce debts and reduce burdens.

(9) Rely on the working class wholeheartedly and give play to the political core role of enterprise party organizations. Strengthen the construction of enterprise party organizations and ideological and political work, improve the quality of enterprise managers, adhere to and improve the democratic management of enterprises with the workers' congress as the basic form, and earnestly safeguard the legitimate rights and interests of employees.

(ten) to promote the construction of enterprise spiritual civilization. Strengthen ideological and moral education and technical business training, comprehensively improve the quality of the workforce, cultivate a positive corporate culture, and promote the coordinated development of material civilization and spiritual civilization.