Discussion On Reasons And Countermeasures Of China's State - Owned Enterprises Lost Money

In the 1990s, the deficit problem of the state owned enterprises is becoming more and more severer. The long term, high amount and large scale deficits seriously hinder the national economy and endanger the social stability as well. Although the hree year deficit turnstrate- gy reached some achievement, for the reduced deficit depends mostly on the governmental policies, it is still a big problem to be solved of how to increase the competitive capability of enterprise itself through the system innovation. The deficit of our state owned enterprises is the inevitable outcome of the interaction among the operating discrepancy, the construction dis- crepancy and the system discrepancy that appeared in the reform. While the inner defect of our traditional state owned system makes the reform of national enterprises fall into a dilemma under the circumstances of market economy. Basically speaking, the reform of the national enterprises is to adjust the productive relationship that doesnt fit the productive ability, to revise the upper construction that doesnt fit the economic fundamental. The eficit turnof the national enterprises is a comprehensive system re- moulding project with the enterprise system innovation as the fundamental, and with the inclusion of strategy adjustment of the national property, the construction the new national property administration system, the formation of the administration system, the renewal of the traditional administration system and the alleviation of the debt plus the surplus problem.