On the Evolution and Role of the Disposition of Chinese State-owned Economy

Before China adopted the reform and open-up policy, Chinese economy had experienced two phases: the economic recovery and reconfiguration period (1949—1956), and the planning economy period (1957—1978). The role of the disposition of Chinese state-owned economy has been an important force influencing state-owned enterprises. With their general disposition roles, the state-owned enterprises have produced dual impacts on Chinese social economy. Even though they helped to construct the foundation of China's independent and complete industrial system, especially China's heavy industry system, their economic efficiency had been decreased, and the non-stated-owned enterprises were brought down heavily. In order to overcome the deficiency of the state-owned economy, we must change their general role into a particular role, which means we should keep a limited size of the stated-owned economy, optimize their disposition, and avoid their monopoly. It is also a necessary trend that the state-owned economy withdraw gradually from the compete fields in the market.