The development of the economic system with public ownership playing a dominant role and diverse forms of ownership developing side by side is a basic characteristic of the socialist economic system at the preliminary stage. Maintain to and improve the basic economic system，deepen the reform of the state-owned assets management system. According to the emancipation and development of productivity, maintain and improve the basic economic system of public ownership system as the mainstay, various economic system common develop.

The public economy consists not only the state-owned economy and the collective economy, but also the state-owned and collective component in the mixed-ownership economy. The dominant position of the public ownership is represented that: the public assets have a dominant proportion in the overall assets of the society; the state-owned economy controls the lifeline of the national economy and plays a leading role in the economic development, as is from the aspect of the whole country. There might be some difference in some places and industries. The dominant position of the public economy requires dominance in quality, but also its improvement in quality, which is of more important. The leading function is best showed in its controlling power. As long as the public ownership plays a dominant position, the State controls the lifeline of the national economy, the controlling power and competition forces of the state-owned economy are strengthened, under these conditions, less state-owned economy will not affect the socialist property of China.

The collective economy is an important part of the public sector of the economy. The collective economy can show the common prosperity policy, absorb scattered capital in the society, lessen the employment pressure, and increase the public accumulation and the state revenue. We should support, encourage and help the development of diverse forms of collective economy. This is of great significance in playing the dominant role of the public economy.

The public ownership may assume diverse forms. All operation methods and organization forms that reflect the law of socialized production can be adopted. The stockholding system is a capital organization system for modern enterprises, in favor of separating the ownership from managerial authority, improving the operation efficiency of enterprises and capital, and can be applied in the socialist market economy in China. The state or collective-controlling sector is obviously public, and is good for enlarging the dominant scope of the public capital, strengthening the dominant position of the public economy. The diverse forms of shareholding cooperative economy in urban and rural areas are fresh things, which should be supported and guided for gradual improvement by summing up experience continuous. We called for and encourage collective economy with the labor's labor association or capital association playing a dominant role.

Promote state capital focus on the important industries and key areas which have important role in the national security and economic lifelines, optimize the layout of the state-owned economy, boost up control, influence and driving force of the state economy, play a leading role.Improve the mechanism of restructuring and rational flow of state capital, speed up the share holding system reform of large state-owned enterprises, except for a handful of enterprises to be run solely by the state, the majority of large state-owned enterprises restructure to companies with multiple shareholders. Improve the ownership structure of state-owned enterprises, develop a mixed-ownership economy, achieve diversification of investment subject and property rights, establish and improve the modern enterprise system, form an effective corporate governance structure, and enhance the vitality of enterprises. Develop more competitive large companies and large enterprise groups. Wholeheartedly rely on the masses of workers, explore the effective ways of democratic management of the stuff and worker in modern enterprise system. Continue to deepen the reform of collective enterprises, and develop various forms of collective economy.

Non-public sectors of the economy are an important part of the socialist market economy in China. We encourage and guide the continuous and healthy development of such non-public sectors of the economy as individually-owned and privately-run businesses.