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Socialization of Property Rights

We propose a new strategy for the reform of the property rights system of state-owned enterprises (SOEs) in China, a strategy based on the socialization of property rights and surrogate owners, and one that is in accord with the historical trend of modern enterprises. This reform strategy should enhance the market competence and competitiveness of SOEs on the one hand, and should ensure that the wealth and profits of SOEs will be beneficial to and enjoyed by all people and the whole society on the other hand, thus providing a sound economic foundation for a socialist “harmonious society.”