Yu Deqing: Another Aspect Of Encouraging Private Capital Is Reform Of State-Owned Enterprises.

Recently, the State Council approved the NDRC's opinions on deepening the reform of the economic system in 2012.

The opinions put forward that we should promptly improve the supporting measures and implementation rules to encourage and guide the healthy development of private investment.

We should encourage private capital to enter the fields of railways, municipal administration, finance, energy, telecommunications, education, medical treatment and so on, encourage and guide private capital to recombine and participate in the reform of state-owned enterprises.

In February,

Whether the reform can be deepened, the most realistic and intractable problem is how to correct the conflict between encouraging private capital to enter the vested interests of state-owned enterprises.

Now, encouraging private capital to enter the fields of railways, municipal administration, finance, energy, telecommunications and so on, will inevitably compete with the state-owned enterprises in these fields, and even create conflicts of interest.

Although the "Pro democracy" is not necessarily "national retreat", it is undeniable that this will still profoundly touch the vested interests of some state-owned enterprises.

The new "non-public 36" implementation rules have been delayed for two years. I am afraid there is a lot of relationship with micro-blog.

So, encourage private capital to enter.

However, there is still no clear information on how to reform state-owned enterprises, which areas should be refunded, and which fields should be entered.

Although the policy level has repeatedly mentioned that encouraging private capital to enter the fields of railways, municipal administration, finance, energy, telecommunications and so on, this may delineate the possible reform areas of state-owned enterprises, but should also realize that in these areas, there are many giant state-owned enterprises holding the economic lifeline of the national economy and people's livelihood, and it is unrealistic for them to withdraw from too many sites.

It is particularly necessary to note that reforming the monopoly of state-owned enterprises and encouraging private capital to enter is to let unreasonable market monopolies and administrative monopolies withdraw, and allow unreasonable industries to go out of examination and approval and control, so as to enable private enterprises to advance and develop under the principle of open market and fair competition.

This is essentially to let the market play the core role of resource allocation.

If some state-owned enterprises are not well managed and inefficient, they will go bankrupt sooner or later and be merged and reorganized by private enterprises.

Government departments at all levels only need to supervise the operators of state-owned enterprises instead of using administrative means to protect state-owned enterprises.

Of course, because of the introduction of adequate competition, some SOEs will live very well by improving management and so on. Such state-owned enterprises continue to exist, that is, the choice of the market, and naturally they do not have to withdraw from the market.

The core of encouraging private capital to enter and start the reform of state-owned enterprises is to straighten out and perfect the market economic system, and realize the freedom, fairness and justice of the market economy in every field.

In the future, the government will only need to be a night watchman in the market economy, and provide public goods such as fairness and justice for the society. The specific problems of competition between private capital and state-owned enterprises should be handed over to the market.

In fact, encourage the development of private capital.