(*Review Article) Research on Privatization Reform of China's Loss-making Public Utilities

Abstract

In this paper, an exposition of the background of China's privatization reform in public utilities, along with an analysis of the reform's content and effectiveness, is presented and organized based on relevant public administration theory and practice. Secondly, a thorough examination of the factors constituting the primary obstacle in China's privatization reform of public utilities is undertaken. Addressing issues arising from private companies pursuing profit while public utility entities seek to avoid losses, it is argued that the incomplete reform of government functions, the constraints of traditional ideology, and the lack of supervision in the privatization of public utilities contribute to these challenges. Finally, recommendations for loss-making public utilities in the privatization reform are put forth. These involve further reforms in the utilities' business model, the establishment of new operational and service paradigms, and the enhancement of government support,regulatory measures,and coordination during the reform process. These measures aim to address the existing challenges in China's loss-making public utilities during the privatization reform.