The Research On International Competitiveness Of The Restructuring Central State-owned Enterprises

In this time and age, the economy of China has already become the driving force of the world through 35 years of the reform and opening-up policy. From a global perspective, the competition among different countries is increasingly reflected in the competition among large enterprises. The operation of large enterprise groups is no longer a simple economic behavior, in fact, it has become the important means and measure for countries to improve the comprehensive national strength and to raise the market competitiveness.In recent years, we have witnessed the economy of China is forging ahead with full development due to reform and openness. Along with the economy growing rapidly and openness to foreign stepping forward, the process of "going out" are accelerating, an array of SOEs, especially central state-owned enterprises have more interaction with the global economic. Served as the powerful engine behind the economic growth, central state-owned enterprises are playing a crucial role in the national economy. Therefore, to develop a number of first-class enterprises with international competitiveness will produce the impetus and resource of China’s economic development, thereby exerting great influence on boosting the economic development. Under the background of economic globalization, it is necessary to safeguard the international status and economic interests of domestic enterprises, and to enhance their international competitiveness is the only way.In November 2013, the Third Plenary Session of the 18th CPC Central Committee proposed to deepen the reform of state-owned enterprises, and to develop the mixed ownership economy actively as well as to improve the state-owned assets management system. In September 2015, the State-owned Assets Supervision and Administration Commission (SASAC) issued the Opinions on the Development of Mixed Ownership Economy by State-owned Enterprises. It proposed to promote the reform of state-owned enterprises, formulate structural adjustment and reorganization plan for central enterprises and promote the reform of mixed ownership of state-owned enterprises. Encourage the SOEs to adjust the proportion of state-owned shares gradually by way of listing, mergers and acquisitions, etc., and actively introduce various types of investors, thereby developing a multiple ownership structure as well as efficient and flexible operating mechanism, all of which have indicated the future direction of SOEs’reform in the future.As restructuring is one of the essential way to enhance the international competitiveness of central SOEs, the effect of the restructuring, and the problem of how restructuring function in promoting the international competitiveness of SOEs are worth deeper research. Central enterprises have important influence on China’s national economy. It is not only of great theoretical value but also of great practical significance to study the reorganization of central enterprises and the promotion of their international competitiveness. The main contents are as follows:First of all, on the basis of combing domestic and international research on the relationship between international competitiveness and corporate reorganization, this paper will analyze the theory of international competitiveness and corporate reorganization, and elaborate the relevant theories of central enterprise reorganization.Given further analysis of the development of central enterprises, including the size, the speed of development the economic status and the efficiency of central enterprises, this essay will establish "one benchmark, two levels, four dimensions" evaluation model of central state-owned enterprises’international competitiveness, in comparison with the Fortune Global 500 in the period of the year 2010 and 2014, thereby analyzing the variation of state-owned enterprises’international competitiveness.Besides, this essay will build up a diamond model of the international competitiveness of central SOEs and come up with six paths that can promote the international competitiveness of central SOEs:larger path (by way of increasing the scale), "stronger path"(by way of improving the profitability and operational efficiency), "better path"(by way of enhancing the growing potentiality and innovation ability), "top-class path"(by way of improving the ability of resource allocation and management), "opportunity path"(by way of improving the external competitive environment) and "government path"(by way of deepening the state enterprise reform).Secondly, this essay will make a judgment on the overall situation of M & A restructuring and reorganization from the central SOEs. On this basis, to illustrate the effectiveness and experience of the reorganization of the central enterprises, and to analyze the existing problems and shortcomings. Overall, the restructuring of central enterprises has achieved remarkable accomplishment, mainly reflected in the layout of SOEs has been optimized, the scale and market competitiveness has significantly increased, as well as the quality and efficiency of operations. However, the problem of central SOEs has also remained, including the insufficiency of core competitiveness, the layout of industry remained to be improved and international operation is still under low level. Most central SOEs are "large" enough, but far from "strong".Afterwards, this paper studies the status quo of international competitiveness of the central enterprises in China and analyzes the performance of China’s central SOEs in the international market by comparing with the the Fortune Global 500. Therefore, the advantages and disparities of central SOEs in China are crystal-clear. Although the central enterprises have achieved striking accomplishment through reorganization, however, when compared with the world-class enterprises, those SOEs are still required more effort to catch up.Then, based on the financial data of central SOEs in the period from 2006 to 2014, AHP is used to analyze the SOEs in the valuation of international competitiveness. In light of the analysis of the two cases of restructuring between China South Loco and China CNR Corp, and the reorganization of COFCO, this essay will study the restructuring impact on international competitiveness of central SOEs. The empirical results show that the reorganization can significantly enhance the international competitiveness of the central SOEs compared with the non-reorganized central SOEs, forcing them to become "stronger", "better" and "world-class".Finally, by drawing the experience of the industrial countries enhancing the international competitiveness of enterprises by way of the reorganization, this essay take both external and internal environment factors into consideration which will affect the international competitiveness of China’s central SOEs. Accordingly, put forward the corresponding countermeasures and suggestions on both national level and the enterprise level respectively.