The Leading Role Of Public Ownership

It is a fundamental principle that manifests and sticks to socialism after the Reform and Opening-up, which Deng Xiaoping repeatedly advocated and adhered to in the new era. In 1997, the 15th CPC National Congress made clear “public ownership playing a leading role and all forms of ownership growing side by side” as the basic economic system of the primary stage of socialism, and at the same time made a new definition of the connotation of the dominant status of the public sector of the economy, which is mainly reflected in that public assets dominate the total social assets, and the state-owned economy controls the lifeline of the national economy and plays a leading role in economic development. The dominant position of the public economy is determined by the socialist nature of our country and its role in the national economy. Public ownership of the means of production is the fundamental economic feature of socialism, the foundation of the socialist economic system, the basic force for the country to guide and promote economic and social development and an important guarantee for the realization of the fundamental interests of the broadest masses and common prosperity. Adhering to the public ownership playing a leading role and the state-owned economy controlling the lifeline of the national economy have a key role in exerting the superiority of the socialist system, enhancing the country's economic strength, national defense strength and national cohesion and enhancing the country's international status.

The socialist public sector of the economy is compatible with large-scale social production. Only by relying on the power of the public sector of the economy playing a leading role can a socialist country make full use of economic means to guide the development of self-employed, private and foreign-funded businesses in a direction that is conducive to socialism. The state-owned economy controls the lifeline of the national economy, has modern material and technical forces and controls production and circulation. The socialist public sector of the economy is the indispensable material guarantee to meet the growing material and cultural needs of members of society, to achieve the economic and political master status of the working people and to realize the common prosperity of all members of the society. The public ownership economy includes not only the state-owned economy and the collective sector of the economy, but also the state-owned and collective components in the mixed ownership economy. The dominant position of the public sector of the economy is mainly reflected in that public assets dominate the total social assets, the state-owned economy controls the lifeline of the national economy and plays a leading role in economic development. The rule applies to the whole country, but some places and industries can be different. The dominant proportion of public assets is manifested in both quantitative advantages and, even more, quality improvement. The leading role of the state-owned economy is mainly reflected in its controlling force. The state-owned economy must dominate the important industries and key areas that are the lifeline of the national economy. In other areas, asset reorganization and structural adjustment can be used to strengthen the focus and improve the overall quality of state-owned assets.

The collective sector of the economy is an important part of the public sector of the economy. The collective sector of the economy can embody the principle of common prosperity, can widely absorb socially dispersed funds, relieve employment pressure and increase public accumulation and national taxation. This is of great significance to the leading role of the public economy. Public ownership can and should be diversified. All business methods and organizational forms that reflect the laws of socialized production can be used boldly. The shareholding system is a form of capital organization of modern enterprises. It cannot be said in general whether the shareholding system is public or private. The key is who holds the controlling rights. State and collective holdings show obvious nature of public ownership, which is conducive to expanding the scope of public capital allocation and enhancing the main role of public ownership.

Since the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, the Communist Party of China has conscientiously summed up the past experience and lessons on the issue of ownership, formulated a policy of public ownership playing a leading role and all forms of economic components growing side by side, and gradually eliminated the fetters of irrational ownership structure on productivity, realizing the diversification of public ownership and the common development of multiple economic components. Continuing to adjust and improve the ownership structure in practice and further liberating and developing the productive forces have become a major task in the comprehensive deepening of the economic system reform.