The function of the Chinese state - owned economy in transitional period: an analysis of its orientation

The function of the Chinese state - owned economy was canonized to a dissimilatory degree in the planned economy era. In the contemporary era when China is establishing the socialist market economy, the function of the state-owned economy needs to be defined and identified again. A return from the dissimilation to the practical should not be only taken as a way to perform the function of the state - owned economy in the West. In the contemporary era, the function of the Chinese state - owned economy should have the followed facets: state - owned economy should embody a stronger control power in dynamic course; state - owned economy should overcome the market failure in the transitional era; state - owned economy should harmonize the economy development between the different regions; state - owned economy should take on the payment function of the cost of the system transformation.