Correctly Understanding The Nature of the Government and Market And Further Deepening the Reform of State owned Enterprises

Although the measures to reduce the losses permitted by policy have achieved preliminary results, the reforming situation in China is still serious. The root problem that prevents the state-owned enterprises from deepening the reform is that we can not correctly understand the nature of the government and the nature of the market. From analysis of the differences of the nature between the government and the market, this article points out that only when we can correctly define the functions of the government and bring into better balance the relations between the government and the market can we have a breakthrough in the reform of the state-owned enterprises and guarantee that they can find a way out of the difficulties.