Shi Chenyu SOE profits benefit the livelihood of the geometric

 Shichen Yu scholars

announced January 17 the Ministry of Finance data show that in 2010 the national state-owned enterprises (excluding state-owned financial enterprises) accumulated profits 1.98706 trillion yuan, an increase of 37.9%, the main benefits targets were a record high. Comparison of

However, faced with such impressive performance state-owned enterprises, not only is difficult to applaud, but attracted a wide range of disputes. Can be attributed to two related questions asked.

why profits come first. First, due to monopoly. Although the data point of view, the state-owned corporate profit growth is gratifying, but the central 70% of the total profits of enterprises concentrated in the telecommunications, electricity, tobacco, oil, and several other industries. In addition, the past two years, the national response to the economic crisis, the introduction of a large number of stimulus, compared to private enterprises, state-owned enterprises receive more benefits from. Such as the credit market, stock market, the inter-bank bond market and other state-owned enterprises are entitled to extraordinary financing facility. Second, due to the traditional high pollution, high energy consumption growth. Profitable state-owned enterprises both big, big number is contaminated. As the unit of measurement to standard coal in 2009, China's energy gap reached 320.29 million tons, accounting for 11% of total energy production. China's oil, gas, coal, coal bed methane and other important energy compensation are only 1% of sales, low compensation standard so that the proceeds should have been attributable to the State resource development of state-owned enterprises were occupy.

The second is the profit going. Belongs to all the assets of all state-owned enterprises, state-owned enterprise profits should be allocated to the universal. But from 1994 onwards, up to ten years time, the state-owned enterprises has not been turned over to profit, although the provisions are now turned over, but the proportion is too low, most of the profits are still corporate hands into new investment and internal business people with high benefits.

In fact, these two problems are overcome China's future economic development needs of the core issues. On the one hand, functional position for the state-owned enterprises contribute to the national economy, and its performance evaluation is not only corporate profits but the public benefit. Deepening state enterprise reform, economic reform must adhere to the direction of the market, the majority of SMEs do not squeeze the living environment.

the other hand, income distribution reform in China just in the heart of structural adjustment, the state-owned enterprises should play an active role. Ministry of Finance recently announced that from 2011 onwards, the central enterprises to improve the proportion of state capital gains charge. It is expected that the proportion of state-owned enterprises will be turned over after-tax profits increased substantially. However, the state-owned after-tax profit if it is the same as before, taken from the state-owned enterprises, should be used on state-owned enterprises, still can not solve the issue of income distribution. According to the ADB statistics, at present, China's education, health, social security and other public spending is only about 6% of GDP, while developed countries the proportion of up to 28%. Therefore, the redistribution of state-owned enterprises should be adopted more profits for social spending.