Take State-Owned Economy As the Leading Factor

It is one of the important definitions of the connotation of public ownership playing a leading role.

Article 7 of the Chinese Constitution stipulates, “The state-owned economy, that is, the socialist economy owned by all people, is the dominant force in the national economy. The country guarantees the consolidation and development of the state-owned economy.” State-owned economy refers to a type of economy in which the means of production are owned by the country, which is a form of ownership in which the means of production are shared by all working people and an important part of the socialist public sector of the economy. It includes enterprises established by central and local government agencies, public institutions and social organizations using state-owned assets, as well as the public institutions that implement corporate operations but no longer with funds or partial funds, and those social groups engaged in business activities, and the enterprises founded by the above enterprises, public institutions and social organizations using state-owned funds. The state-owned economy is the backbone of our country's national economy and an important force to promote the modernization of the country and protect the common interests of the people. The leading role of the state-owned economy in the national economy is mainly reflected in the correct guidance for the development of the national economy and its control over the overall situation of economy.

The industries and fields that the state-owned economy needs to control mainly include: industries involving national security, industries that are naturally monopolized, industries that provide important public products and services and important backbone enterprises in pillar industries and high-tech industries. In other areas, through asset reorganization and structural adjustment and based on the principle of “sometimes advance and sometimes retreat, and do something and don’t do something”, pay more attention to the focus to improve the overall quality of state-owned assets. To further enhance the control of the state-owned economy, it is necessary to grasp the key parts. Firstly, the state-owned economy must occupy a dominant position in important industries and key areas that are related to the lifeline of the national economy, supporting, guiding and promoting the development of the social economy, as well as playing a key role in the goal of achieving national macro-control. The second is that the state-owned economy should maintain the necessary quantity, but more attention should be paid to the optimization of the overall distribution and the improvement of economic quality, technical quality, management quality, etc., and the expansion of its influence. The third is that the state-owned economy's control over the national economy is not only achieved through the role of solely state-owned enterprises, but also through the vigorous development of mixed-ownership enterprises in which the country controls and shares the stocks, so that state-owned capital is well-leveraged. Fourthly, the leading role of the state-owned economy in the national economy can vary in different stages of national economic development, in different industries and in different regions. After years of reform and development, the total amount of state-owned assets in China has increased substantially, the layout and structure of state-owned capital have been gradually optimized, the vitality of the state-owned economy has been enhanced and its leading role and influence have continued to expand. State-owned enterprises have generally integrated with the market economy, with some state-owned enterprises growing into world-renowned ones. The direction of the further reform and adjustment of the state-owned economy is to make the investment and operation of state-owned capital serve the national strategic goals, invest more in important industries and key areas that are related to national security and the lifeline of the national economy and focus on providing public services, developing important forward-looking strategic industries, protecting the ecological environment, supporting technological progress and ensuring national security.