Views On Reforming Of Chengdu YJC Factory

The reform of property system of state-owned enterprises is a very complicated, continuous and deepening systematic project. The goal of reform is to change state-owned enterprises into lawful entities which are characterized by definite property, and to build up a modern enterprise system whish is compatible with the free market economy. However, there is not a unified policy throughout the state that specifies how to implement the reform. Local governments need to base their reform on specific situations of their local areas, implement the reform under the framework of the central government's policy, and improve it as the local economic and cultural environment changes. The allocation of state owned properties, compensating of state employees, and management structure will be affected by the method of reforming. How successful a reform is has direct ties to the enterprise development and the stability of the society.Under the current market situation of Chengdu where the "Strategy of Reforming the Industry Structure in East Suburb" is in the process of implementation, the metropolitan reform speeds up, and the real estate previously obtained through the state planning is getting hot, the state-owned enterprise reform of Chengdu has got new opportunities. However, the commonly implemented "Internal Reforming" has become an outdated model that apparently cannot catch up with the fast changing environment of Chengdu. It, therefore, becomes necessary to discuss about ways that can improve the enterprise reform of Chengdu.Through analyzing the case of dispute happened during the reform of Chengdu YJC Factory, by examining its background, causes and the normality of reform, by both researching on documentations and doing on-site investigation, from the perspective of Management and by focusing on the allocation of state owned properties, compensating of state employees, and management structure, this article discussed the issues and potential problems existed in the reform of state-owned enterprises of Chengdu. It tried to explore ways that can improve the current methods of reform, and proposed that the exchange of property in market is the best way to reform state-owned enterprises. The analysis and examination of the dispute case of Chengdu YJC Factory can provide useful information for other enterprises. It also provides references to related government agencies for any attempts to improve the state-owned enterprise reform.