Study Of Collective Ownership Of Property Rights Change In China

The reform process of the socialist economic system can actually be taken as the reform history of the publicly owned enterprises. The focus of the reform on the publicly owned enterprises has been narrowed down on the treatment of property rights. The basic principle of the reform of property rights goes as follows: maintain the public ownership in the dominant status and put all the people on the path leading to common wealth. Two issues: how to hold the dominant status of the public ownership under a market economy and how to facilitate the working people' s strive for common wealth, therefore, have become a public concern. Years of reforming practice have considerably enriched people' s understanding of public ownership at the preliminary phase of socialism: public ownership can be a combination of pubic possession and individual possession rather than a purity; the realization of public ownership enjoys a variety of means rather than a single and unchangeable one and is ready for change and development; the state ownership and collective ownership are only two forms of the public ownership; the dominant status of public ownership by no means indicates that the state ownership should keep an overwhelming position; instead it is more beneficial to play its dominant role in quality and quantity, at the overall and macro level and from the development of public ownership forms including the collective economy. Substantial changes have happened to the economic structure of pubic ownership thanks to years of reform: the state ownership has been exiting step by step out of the common and competitive sectors and increasingly concentrates on the pubic sectors and the market impotence sectors; the collective ownership has gone through the reform of the property rights system, restoring the individual property rights of the working people. A unique form of property management is thus created under the socialist economy and fits in well with the development level of China' s productivity.The refreshed collective ownership is well on its way to a main part of the public ownership.Only the reform of property rights is not capable of solving all the problems at one stroke. The success of the reform of property rights depends mostly on the innovation of the enterprise system. Public ownership is advantageous in wiping out the money worship and the discrepancy between the rich and the poor whereas competition makes the fundamental principle of a market economy. A collective enterprise which aims at staying firm and winning the upper hand in the fierce competition needs to transform itself to a competitive entity and a market main body at ease with the ever-changing market economy. It is essential to establish a modern enterprise system in the reform of the collective enterprises. The absence of a scientific and regulated modern enterprise system makes it impossible for the enterprises to survive the keen competition characteristic of a market economy, let alone any development.The reform of collective property rights lays the foundation for the establishment of a modern enterprise system. The settlement of two issues is a must in the reform of the collective rights. The two issues are: firstly, it is necessary to set up absolutely clarified property rights relations. The blurred nature of the conventional property rights relations leads to the fact that all the working people literally possess the property whereas none of them actually holds a share. Under the new property rights relations the working people enjoy a feasible and clarified individual ownership as well as keeping the public ownership. Secondly, a property rights structure with multiple owners needs to be established so as to resolve the closeness of the property rights and trade difficulties and put the property rights on the right track towards openness and socialization. The inner monopoly of the "economic person" , therefore, will no longer stay as a hindrance with the corporate management structure steady on the way to rationality and ef...