Research on the Synergy between Government Role and Market Mechanism in Competition and Cooperation of State-Owned Enterprises

Hubei United Investment E’Dong Investment Co. Ltd, Huanggang, China

^* Corresponding author: bwu2023@163.com

Abstract

As the market economy matures and global economic integration deepens, state-owned firms play an increasingly important role in domestic and international competition and collaboration. The purpose of this article is to investigate the government’s involvement in state-owned enterprise competition and collaboration, as well as how to effectively engage with market processes to improve state-owned firms’ competitiveness. The paper first examines the new challenges and opportunities encountered by state-owned firms in the context of globalization, then investigates the interaction between government involvement and market mechanisms, and then recommends methods for mutual coordination and optimization. Through case studies and data analysis, this study discovered that an effective combination of moderate government intervention and market mechanisms can promote the stable development of state-owned enterprises, whereas excessive intervention or complete laissez faire may result in unfair or inefficient resource allocation. Based on the research findings, policy recommendations have been suggested to serve as decision-making tools for the government and state-owned firms in order to preserve and appreciate state-owned assets while also promoting sustainable and healthy economic development. In today’s economic system, state-owned firms play a vital role in the development of the national economy, and their healthy and stable growth is critical. The government is critical to the operation of state-owned firms since it owns them. However, striking a balance between government interference and free market competition is a critical issue that must be addressed during the reform and development of state-owned firms. The government must set reasonable market access thresholds through laws and regulations, implement a strong market oversight system, and offer the necessary policy assistance to assist state-owned firms in establishing modern enterprise systems, improving management levels, and competitiveness.