(3) Set up modern enterprise system Modern enterprise system of setting up property right clearly, having well defined power and responsibility, management science. " Decision on setting up several of socialist market economy system question of the Central Committee of the Communist Party of China " which the Third Plenary Session of the 14th Party Central Committee passes China has summarized the essential feature of the modern enterprise system exhaustively: First, the relations between ownership and management of enterprises are distinct, the state-run assets ownership in enterprises belongs to the country, enterprises have proprietary of legal persons that the invstors including country made the investment and formed, become and enjoy the civil right, entity of legal person who bears civil liability. Second, enterprises manage independently in accordance with the law, assume sole responsibility for its profits or losses with their legal persons' property, pay taxes according to regulations, bear the responsible for maintaining and increasing the value of assets to invstors. Third, invstors, according to investing the capital volume of enterprises to enjoy the owner's rights and interests, i.e. the benefited, great decision of the assets and choosing rights such as the administrator,etc.. When enterprise bankrupt, invstor bear limited responsibility in order to capital volume to invest enterprise to enterprise's debt only. Fourth, enterprises organize the production and management according to market demand, with the purpose of raising labour productivity and managing benefit, the government does not intervene the production and operating activities of enterprises directly. Enterprises select the superior and eliminate the inferior in the market competition, the ones that suffered the loss, not paid one's debts with all his assets should go bankrupt in accordance with the law for a long time. Fifth, set up scientific enterprise leadership structure and organize the management system, regulate the relation between the owner, operator and worker, form the operating mechanism combined in encouragement and restraint.