The Ownership of Means of Production in China

The Ownership of Means of Production in China

Public Ownership as the Mainstay, with Diverse Forms of Ownership Developing Together

The Dominant Position of Public Ownership and Its Manifestation

For human beings to survive and develop, basic needs such as food, clothing, housing, and transportation must be met, which requires the production of material goods. The production of material goods is inseparable from human labor and means of production. Labor is the source of material wealth and the only source of value, while the means of production are the conditions for creating material wealth and value.

The ownership of means of production plays a decisive role in the relations of production, forming the core of production relations and serving as the foundation of the economic system. Different societies have different forms of ownership of the means of production, and even within the same society, there can be various forms of ownership. The dominant form of ownership of the means of production determines the basic nature and direction of development of a society.

In the primary stage of socialism in China, we uphold public ownership as the mainstay, while allowing diverse forms of ownership to develop alongside it. This is a key pillar of the socialist system with Chinese characteristics, reflecting its superiority. As socialism with Chinese characteristics enters a new era, so does the development of China's economy, which must be guided by Xi Jinping's economic thought to promote high-quality economic development while maintaining the fundamental economic systems of socialism.

Public ownership as the mainstay is a fundamental characteristic of the economic system during the primary stage of socialism. The public economy includes state-owned economy, collective economy, and the state and collective components within the mixed-ownership economy. These forms have developed over a long historical process and have made significant contributions to national construction, national defense, and the improvement of people's lives, serving as the foundation of the socialist economic system. The remarkable achievements in China's economic and social development are inseparable from the public economy.

Public ownership as the mainstay is a fundamental requirement for promoting the development of productive forces. Public ownership of the means of production meets the requirements of large-scale socialized production, forming the institutional basis for the socialist state to exercise macroeconomic regulation and control, which is conducive to promoting high-quality economic development.

Public ownership as the mainstay is the basic prerequisite for achieving common prosperity. Production determines distribution, and different forms of ownership of the means of production determine different distribution systems. Public ownership of the means of production dictates that a socialist state must adopt a system of distribution according to work, reflecting equal relations in the ownership of the means of production, preventing polarization, and facilitating the sharing of development achievements by the people, thus achieving common prosperity.

The dominant position of public ownership is mainly reflected in the fact that public assets dominate the total social assets, and the state-owned economy controls the lifeline of the national economy, playing a leading role in economic development. This is true nationwide, though variations may exist in certain regions or industries. The dominance of public assets must be emphasized not only in terms of quantity but also in improving quality.

The leading role of the state-owned economy is primarily reflected in its control. In industries and key sectors related to the lifeblood of the national economy, the state-owned economy must maintain a dominant position. In other sectors, asset restructuring and structural adjustments can be undertaken to strengthen key areas and improve the overall quality of state-owned assets.

State-owned enterprises are the main form through which the state-owned economy is realized. They are an important material and political foundation of socialism with Chinese characteristics, an essential force in advancing national modernization and safeguarding the common interests of the people, and a crucial pillar and reliance for the Party in governing the country.

The Joint Development of Diverse Forms of Ownership

At the current stage in China, the non-public economy includes individual economy, private economy, investment economy from Hong Kong, Macao, and Taiwan, foreign investment economy, as well as the non-state and non-collective components within the mixed-ownership economy.

The individual economy refers to a form of non-public ownership in which the means of production are owned by individuals and controlled and used by them. The private economy refers to a form of non-public ownership in which enterprise assets are privately owned and there is an employer-employee relationship. The foreign investment economy refers to the wholly foreign-owned enterprises and the foreign-invested parts of joint ventures established in China by foreign investors in accordance with Chinese laws and regulations. Investments from Hong Kong, Macao, and Taiwan in mainland China are treated similarly to foreign investments.

The non-public economy is an important component of the socialist market economy. Since the reform and opening up, the non-public economy has continuously grown and become a significant force in stabilizing economic growth, improving people's livelihoods, driving entrepreneurship and employment, leading technological innovation, and contributing to national tax revenue. It plays an important role in the development of the socialist market economy, government function transformation, rural surplus labor transfer, and international market expansion.

In the primary stage of socialism, public and non-public economies are not mutually exclusive or offsetting but are complementary and mutually reinforcing, developing together within the process of socialist modernization. At this stage, we cannot implement a single public ownership system, nor can we promote privatization.

The joint development of diverse forms of ownership is conducive to leveraging the strengths of various forms of ownership, mobilizing the enthusiasm and creativity of different economic entities, effectively utilizing resources from all sectors, complementing each other, and stimulating the vitality of the socialist market economy, thereby promoting high-quality economic development.

Adhering to the "Two Unswervingly" Principles

Unswervingly Consolidating and Developing the Public Economy

To unswervingly consolidate and develop the public economy, we must strengthen and expand the state-owned economy. To achieve this, we must accelerate the optimization of the layout and structural adjustment of the state-owned economy. We need to focus the state-owned economy further on strategic security, industry leadership, national economy and people's livelihood, and public services, concentrating on important industries related to national security and the lifeblood of the national economy, as well as on public service provision, emergency capacity building, and public welfare.

To strengthen and expand the state-owned economy, we must deepen the reform of state-owned assets and enterprises. This involves using the liberation and development of social productive forces as a standard, with a focus on improving the efficiency of state-owned capital and enhancing the vitality of state-owned enterprises. We must comprehensively promote the rule of law in enterprise management, uphold the Party's comprehensive leadership over state-owned enterprises, and work to make state-owned capital and enterprises stronger, better, and bigger, continually enhancing the competitiveness, innovation capacity, control, influence, and risk resistance of the state-owned economy.

To strengthen and expand the state-owned economy, we must explore diverse forms of public ownership and improve the modern enterprise system with Chinese characteristics. The joint-stock system is a form of capital organization in modern enterprises.

To unswervingly consolidate and develop the public economy, we must strengthen and expand the rural collective economy. This requires deepening the reform of the rural land system to grant farmers more substantial property rights.

To strengthen and expand the rural collective economy, we must consolidate and improve the basic rural management system, develop new forms of rural collective economy, nurture new types of agricultural business entities and agricultural socialized services, and promote the appropriate scale of agricultural operations.

Unswervingly Encouraging, Supporting, and Guiding the Development of the Non-public Economy

Since the reform and opening up, China's non-public economy has developed under the premise of upholding the dominant position of public ownership and the leading role of the state-owned economy, with the encouragement and support of the Party and the state. It has become an important force in driving economic and social development. Therefore, we must unswervingly encourage, support, and guide the development of the non-public economy.

To encourage, support, and guide the development of the non-public economy, we must cultivate more dynamic market entities and create a system environment that supports the high-quality development of the non-public economy. We must foster a market environment where all forms of ownership can equally access resources, participate openly, fairly, and justly in competition, and receive equal legal protection. We must protect private enterprise property rights and entrepreneur rights by law, implement policies that promote the healthy development of the non-public economy, including market access and business financing, and create a favorable environment and social atmosphere for the development of the non-public economy.

To encourage, support, and guide the development of the non-public economy, we must support and help non-public enterprises improve their management, perfect their management systems and mechanisms, enhance their production technology levels and research and development capabilities, thereby continuously improving their efficiency and market competitiveness.

To encourage, support, and guide the development of the non-public economy, we must comprehensively build a "pro-clear" relationship between government and business, promote the healthy growth of non-public economy figures, and uphold the spirit of entrepreneurship. Non-public economy figures should adhere to patriotism and dedication, lawful and honest business practices, and social responsibility, striving to establish a good social image for enterprises.