Study On The Evolution And Reform Path Of Profit Distribution System In State-owned Enterprises

It’s proposed to establish reasonable sharing system of proceeds from the transfer of public resources in the 18th National Congress of the Communist Party of China,and the proportion of SOE dividends paid to the central government is determined to be up to 30% by 2020 in the 3rd Plenary Session of 18th National Congress of the Communist Party of China. The deepening of SOE reform is the important content in the China’s economic system reform and the subject that how the profit distribution reform of SOE earnings improves social welfare and let the citizens reasonably share the results is widely discussed in the society.The profit distribution system of China’s SOEs has been evolved constantly since the founding of the P.R.C. and it has finally made the separation of taxes and profits. However, the current profit distribution system of SOE is not satisfied and has many problems, including that the scope of SOE dividends is still narrow, the proportion of dividend payment ratio is still low, the major profit paid to the central government is still returned to the SOEs, the profit used for people’s livelihood is very low, SOEs always make excessive investment, the loss of state-owned assets is serious, the salary of SOE management team is high and welfare of its employees is too good in some monopolized SOEs, which creates social inequity. The profit distribution policies in developed countries have provided a good reference for China’s reform in profit distribution of SOEs. The essay makes a study on the reform path of profit distribution system in China’s SOEs through the tracking on the evolution of profit distribution system in China’s SOEs, stating of current situation, deep analysis on the disadvantages of the system and its reasons and making a summary of the experience in foreign countries.