State owned enterprises are unique dancers between the system and the market

Mondo Workplace Updated on 2024-02-21

There are often many people talking about whether state-owned enterprises are part of the system. The question is not that simple, because the division between inside and outside the system is not black and white, but there are many gray areas. However, we can take a look at whether state-owned enterprises are counted in the system from the following aspects.

1. Definition of system and ownership of state-owned enterprises.

The system generally refers to the division of authority for the establishment and management of state organs, enterprises and institutions, as well as the formulation and implementation of various rules and regulations. From this point of view, state-owned enterprises are counted within the system. Because state-owned enterprises are state-owned or state-controlled enterprises, their management and operation are regulated and constrained by relevant national laws and regulations, and they also bear various social responsibilities entrusted by the state. These are similar to units within the system to some extent.

Second, the establishment and the identity of state-owned enterprises.

The system generally refers to the number of regular employees with an establishment, while the establishment refers to the number of personnel and the position establishment plan formulated by state organs, enterprises and institutions according to their business needs. State-owned enterprises also have an establishment, and the number of establishments and the establishment of positions are also managed and approved by the relevant state departments. Therefore, from this point of view, state-owned enterprises can also be regarded as units within the system.

3. The market-oriented and socialized operation of state-owned enterprises.

However, there are also some people who believe that SOEs are not considered in the system. Although state-owned enterprises are state-owned or state-controlled, their management and operation are relatively independent, and their personnel mobility and job competitiveness are stronger than those of traditional units in the system. At the same time, state-owned enterprises are also more market-oriented in terms of recruitment and employment, and their recruitment and employment methods are more flexible and diverse than those of traditional units in the system.

To sum up, we can conclude that SOEs can be regarded as units within the system to some extent, but their management and operation methods are more market-oriented and socialized than those of traditional units within the system. This is also the inevitable result of the gradual marketization and modernization of state-owned enterprises since the beginning of reform and opening up.

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