Reflections on the Revitalization of Northeast China

Fei Lu1, Zhiwen Wang2

(1. International College, Burapha University, Thailand; 2. International Business College, Shenyang Normal University, China)

Abstract: This paper uses the key facts and figures to reveal that success of SOEs’ reform is the key to revitalize China’s Northeast Region. It also proposes innovatively that essence of being state-owned and letting the ownership of enterprise possessed by government, which functions as the service agency to handle national affairs, is the contrary to the principle of fair competition under the market mechanism. Thus, this article further points out the necessity to continue the completion of SOEs reform and reconsiders what is the real loss of state assets. Using national boundary as the standard is also a new perspective that is put forward for the first time. At last, this paper argues four approaches of marketization for state-owned enterprises in China’s Northeast region: delineation of Special Economic Zones, demise or sale of SOE assets and personnel separation, shareholding system reform and capital socialization.

Key words: northeast region revitalization, SOEs form, loss of state assets, capital socialization