Investigation Report, Sichuan Cast Long Steel Belongs To The Collective Enterprises To Change Their Operating System

During the proceeding of reform and open in China, the reform of domestic enterprises is becoming the central subject paid great attention to by people both at home and abroad. This report is intended to explicate Chinese large-scale enterprises how to transform their administerial systems in the reform so as to adapt themselves to market economy, depending on data from a Collective Corporation belonged to Sichuan Invest & Changcheng Iron and Steel Corporation which is going on transformation of administerial system.Sichuan Invest & Changcheng Iron and Steel Corporation, which situates in Jiangyou city, Sichuan, is one of the biggest bases of production and research of special steel in china. After 30 years' construction, at present the corporation is a large domestic enterprise with possession of gross capital 5.25 billion RMB, output of 650 thousand tons special steel and 700 thousand tons finished steel every year. The collective economy of Changgang was formed at the beginning of 1970's. To deal with the employment of workers' family members, every plant sequentially established small factories attaching themselves to plants in this time. Moreover, with a lot of intelligent young people coming back to the city, the pressure of employment began to soar. Therefore, the collective corporation was formally founded in May 1979. Because Jiangyou City is small and undeveloped, it offers so few job opportunities that people increasing who need jobs have to be almost self-employed by Changgang Collective Corporation. After setting up a series of social service organs such as schools, hospitals, even a public security bureau, Changgang is so self-sufficient that it nearly is a close community. But its burden is heavily very much, for it must bear not only enterprise's duties but also social responsibilities.Impacted by slump of national steel business, Changgang is in trouble which it has never faced, and the situation of producing and managing is sharply worsen. In result, completely depending on Mother Corporation makes Collective Corporations rolled into a crisis, and a considerable part of Collective Corporation has not enough work to do.After description about the condition of Changgang Collective Economy and some means were worked out recently, the report points out that studying situation vividly, knowing tasks clearly, promoting reform urgently and transforming system timely are essential ways to development and existence of Changgang collective corporations. Meanwhile, it provides with following four thoughts: Related with capital, collective corporations should make sure of domestic capital's right and realize the aim of keeping value and increasing value.Directed by market, collective corporations should gradually free themselves from attachment to former systems.Establishing domestic capital running company which accord with the character of modern enterprise should focus on construction for systems.Collective corporations should construct step by step open enterprises that accord with the four principles with a prerequisite of social stability.