The Relationship Between the State-Owned and Private Economies

After the founding of New China, it was necessary to find an economic model that truly conformed to the basic national conditions and adapted to the various development stages. The relationship between the public ownership economy and the other economies had to be set. After 60 years of practice and repeated trial and error, a basic socialist economic system was created, with public ownership at the helm and diverse forms of ownership developing side by side. China’s basic economic system is unique in the world, and is a major string to the Party’s bow. Its advantages lie in giving full play to the respective advantages of diverse forms of ownership, and in fully mobilizing the creativity of each aspect. It is the world’s most dynamic and competitive economic system by far, but it has not been plain sailing.