The prevailing pattern of privatization on the mainland
The most important mode of privatization of various industries on the mainland is to liberalize the mode of competition. Whichever industry you want to privatize, you can liberalize the market in whichever industry. In a few years, the capital of this industry will become an industry dominated by private capital, and this industry can basically be called a private industry, and this industry will be privatized. So, the original state-owned or collective property of this industry has run to the top of the world?It is estimated that there is no run there, and in most cases, private property is rapidly expanding in this industry, while state or collective property remains unchanged or slowly increases, and the proportion of state or collective property in this industry is getting smaller and smaller, and it is becoming more and more secondary. However, the private nature of the industry became more and more prominent, and later, these state-owned or collective units could only survive in this industry. The last remaining wealth of a State-owned or collective unit is generally shared by the staff within those units. For example, in the name of unemployment benefits, etc., the surplus property of state-owned and collective units is divided.
There are many industries that are eligible for this privatization model, such as commercial systems that are already privatized. The model is that the industry is liberalized, the competition is fierce, the proportion of private capital increases rapidly, the proportion of state-owned or collective capital decreases rapidly, and finally, the remaining state-owned or collective capital is shared by the remaining employees.
As long as the state completely liberalizes the industry or industry, it is almost impossible not to privatize. Industries or industries that the state has not opened up to its citizens are still state-owned. For example, the financial industry, the telecommunications industry, and the railway industry have not been completely liberalized to their own people, so these industries have not yet been privatized.
In some sectors with large enterprises, the state has not fully liberalized private investment. And because these companies need huge investment, and the mainland's financial policies are still very unreasonable, these factors have affected the investment of private companies in these large enterprises. For example, the steel industry and the automobile industry have not been privatized mainly because of policy factors. For example, investment approval policies are disadvantageous to the private sector. The establishment of these enterprises requires the permission of the Development and Reform Commission, which is an important threshold, which is very unfavorable for enterprises that are ready to join. Another threshold is financial policy, the financial system of state-owned assets is very unfavorable for private enterprises to obtain capital, and such enterprises need huge capital, which is also a high threshold. If the state completely liberalizes these industries, and if China's financial system is more perfect, then it is estimated that it will not be long before these industries will become dominated by private enterprises. The original state-owned enterprises will also be gradually eliminated, and the remaining assets of these state-owned enterprises will still be shared by the remaining employees.
The reform of the country should be like this, the industry should be liberalized, free competition, and backwardness should be eliminated, and the resistance of such a reform model should be relatively small. Employees of state-owned enterprises should not have many opinions, and state-owned enterprises have indeed grown up in care and declined in equal competition. There is also no problem of selling state-owned enterprises at a low price, but it is to let private enterprises start anew and gradually replace the market space occupied by the original state-owned enterprises through free competition. The property of state-owned enterprises, which are gradually shrinking in competition, should be distributed by the state to employees of state-owned enterprises under various names.
The process of privatization is accompanied by an increase in the efficiency of the industry's operations. Private enterprises rely on free competition to gradually exclude state-owned enterprises. Consumers of enterprise products choose the products of private enterprises because consumers believe that they can get more benefits by consuming the products of private enterprises. In the process of privatization, it is very beneficial for the average consumer. It is the consumers who choose the private enterprise, which makes the private enterprise gradually grow. It is the consumers who abandon the state-owned enterprises, causing the state-owned enterprises to shrink gradually.
The liberalization of the competition model is an inevitable mode of gradual reform and industrial privatization in the mainland, and this is not the industrial privatization model that more countries in the world generally engage in. The general model of privatization of the industry is to sell the state-owned enterprises in the industry, and this privatization model is relatively fast, and it is the privatization model of Eastern European countries. If you want to accelerate the reform of the economic system, you can also choose this privatization model.