Some thoughts on deepening the reform of ownership structure

The fundamental criterion of the ＂three favorables＂ put forward by Deng Xiaoping is the basic theoretical foundation on which China＇s current ownership structure is established and improved, one where public ownership is dominant and diverse forms of ownership coexist. What is critical for properly handling the relationship between the public and non-public economies and coordinating them within the great practice of constructing socialism with Chinese characteristics is adherence to the dominance of public ownership together with ceaseless exploration and active adoption of effective forms to realize public ownership. ＂Public assets dominate the total assets in society.＂ Their dominance in terms of quantity should mean mainly that net public operating assets account for a dominant proportion of society＇s overall net operating assets, while their dominance in terms of quality should be seen in the ability of the socialist economy linked with net public operating assets to yield much higher labor productivity than the capitalist economy. In order to consolidate and develop the public economy in China, and further bring into play the dominant role of the state-owned economy, it is imperative for us to correctly understand and grasp the unique features of China in the distribution of the state sector of the economy in the conditions of the socialist market economy, rationally map out and continuously optimize its distribution and structure, and endeavor to nurture a group of intemationally competitive large-scale state-owned or state-controlled enterprises or enterprise groups.