ABSTRACT
This chapter focuses on the reforms of the state capital allocation system and the state enterprise management system. The state-owned (alternatively state) capital system is divided into two tiers: state capital allocation system at the first tier and state enterprise management system at the second tier. Systems and reforms at different tiers should not be lumped together, making matters confusing. One significant difference between state capital and private capital or non-governmental capital is that: to achieve national development strategies, a state should make certain policies to attract private capital to invest in pertinent areas, while private capital has options in making decisions on benefits brought about by the policies. The primary social responsibilities for an average state enterprise, like those of various other types of enterprises, are providing societies with high quality products and services, qualified personnel and experience.
