“Two Unswervinglys”

In the report of the 16th CPC National Congress in 2002, the guiding ideology of deepening the reform of the economic system and perfecting the basic economic system of the primary stage of socialism was “the public sector of the economy must be unswervingly consolidated and developed, and the development of non-public sector of the economy must be unswervingly encouraged, supported and guided.” In November 2013, the “Decision of the Central Committee of the Communist Party of China on Several Major Issues of Comprehensively Deepening Reform” was adopted by the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China, once again emphasized that we must continue to adhere to the “Two Unswervinglys”, that is, “We must unswervingly consolidate and develop public sector of the economy, adhere to the dominant status of public ownership, give play to the leading role of the state-owned economy and continuously enhance the vitality, control and influence of the state-owned economy. We must unswervingly encourage, support and guide the development of the non-public sector of the economy, and stimulate the vitality and creativity of the non-public sector of the economy.”

Marxism believes that ownership is the core and foundation of the social economic system and determines the nature of the social economic system. The public sector of the economy is the pillar of our country's socialist modernization and the main material basis for the country to carry out macro-control and it is the fundamental manifestation of the nature of the socialist economy. The development and expansion of the state-owned economy and the state-owned economy's control of the lifeline of the national economy play a key role in giving play to the superiority of the socialist system and enhancing our country's economic strength, national defense strength and national cohesion. The collective sector of the economy is an important part of the public sector of the economy and plays an important role in achieving common prosperity. Any viewpoint that denies the dominant status of public ownership is harmful in theory and practice. To adhere to the dominant position of public ownership means to deepen the reform of state-owned enterprises, further explore multiple effective forms of public ownership, especially state-owned ownership, and vigorously promote enterprise system, technology and management innovation. Except for a very small number of enterprises that must be solely owned by the state, we should actively promote the shareholding system and develop a mixed ownership economy. Investment entities are diversified and important enterprises are controlled by the state. In accordance with the requirements of the modern enterprise system, state-owned large and medium-sized enterprises continue to implement standardized corporate reforms and improve the corporate governance structure. Promote the reform of monopoly industries and actively introduce competition mechanisms. Through market and policy guidance, we should develop large companies and conglomerates with international competitiveness. Further liberalize and invigorate state-owned small and medium-sized enterprises. Deepen the reform of collective enterprises, continue to support and help the development of various forms of the collective sector of the economy. Unswervingly encouraging, supporting, and guiding the development of the non-public sector of the economy and stimulating the vitality and creativity of the non-public sector of the economy are another principle that must be followed to uphold and improve the basic economic system in the primary stage of socialism. It is necessary to uphold equal rights, equal opportunities and equal rules, abolish unreasonable regulations on various forms of the non-public sector of the economy, eliminate various hidden barriers, formulate specific measures for non-public ownership enterprises to enter the franchise field and ensure that various ownership economies use factors of production equally in accordance with the law and participate in market competition openly and fairly. We need to stick to the equal protection of property rights. Public and non-public economic property rights are equally inviolable. Economic property rights and legal interests of various ownership systems are equally protected by law and subject to supervision in accordance with the law. It is necessary to guide and encourage qualified private enterprises to use the property rights market, introduce state-owned capital or other forms of social capital to improve the equity structure of enterprises.

Encourage the development of mixed-ownership enterprises controlled by non-public capital. Encourage qualified private enterprises to establish a modern enterprise system. Relax the market access areas for domestic private capital and take measures in investment and financing, taxation, land use and foreign trade to achieve fair competition. Strengthen supervision and management according to the law and promote the healthy development of the non-public sector of the economy. Improve the legal system to protect private property. Adhere to public ownership playing a leading role and promote the development of non-public sector of the economy. Unite them in the process of socialist modernization instead of setting them against each other. Various sectors of the economy can fully play their respective advantages in market competition, promote each other, and develop together. Adhering to the “two unswervinglys” proposal has drawn a clear line from the viewpoints of privatization and single public ownership, endowing Marxist political economy with Chinese characteristics and connotation of the times, which is also an important contribution to the modernization of economic theory.