Scan and Interpretation on the Financial Management System of State-owned Enterprises in New China

Abstract

Since the foundation of New China,the reform and development of financial management system of state-owned enterprises falls into three periods.The first period,from 1949 to1978,China implemented planned economy system,in which the finance of enterprises actually was the extension of national finance,while the state controlled over the income and expenditure,and was responsible for the losses and and enterprises barely had autonomy in management.The second period can be devided into two parts.From the end of 1978 to 1984,China was dominated by planned economy and supplemented by market adjustment,the financial management system of enterprises began the initial reform of decentralizing power and allowing profits retained within enterprises;from 1984 to 1993,China began to carry out planned market-oriented economy system and separate government functions from enterprise management,the financial management system entered into the period that the state expanded enterprises' power and allowed more profits retained within enterprises,and took partial responsibility for the losses and profits.The third period,from the 3th plenary session of the 14th CPC Central Committee in 1993 till now,China has established the socialist market economy system,basically set up the modern enterprise system and modern financial management system that state-owned enterprises self-management in finance and full responsibility for their own losses and profits.