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12345678910111213141516171819202122232425262728291199250%210%15%20%341Abstract.TheBasisofPrivately-ownedEconomyinChina1.TheorybasisAccordingtobasicMaxisttheories,productivityisthemostrevolutionaryandactivefactorandthefundamentalpowerforthedevelopmentofoursociety.Thatsocialismtakestheplaceofcapitalismistopropelthedevelopmentofproductivity,andinotherwords,toincreasetotalamountofproductivity.TheproductivitytheoryofMaxismclaimsthatthebasicaimofsocialistrevolutionistoliberateanddevelopproductivity.DengXiaopingcombinedbasicMaxisttheorieswiththefactthatthetotalstandardofproductivityisnotveryhighattheprimarystageofsocialismandespeciallypointedout,Althoughtherearemanysocialismtasks,themostbasiconeistodevelopproductivity.Onthebasisofthedevelopmentofproductivity,theadvantagesofsocialismarerevealed.Italsoprovidesmaterialbasisforcommunism.Thereportofthe15thNationalCongressoftheCommunistPartyofChinastickstotheprincipleofliberationanddevelopmentofproductivityandmakesgreattheorychangeonownershipstructure.Italsopointsoutthat,attheprimarystageofsocialism,thebasiceconomicsystemismadeupfrompublicownershipeconomyasitsmainbodyandcommondevelopmentofmultipleownershipeconomies.Non-publicownershipeconomyisanimportantpartofChinesesocialistmarketeconomy.Weshouldcontinue2encouragingandguidingnon-publicownershipeconomysuchasindividually-ownedeconomyandmakeitdevelophealthily.2.RealitybasisApureandsinglepublicownershipstructurehasbeencarriedoutafterthefoundingofnewChina.Underthestructure,thedevelopmentofproductivitydidn'tformactiveeconomicconnectionssothatthestandardofproductivitywaslow.Afterreform,privately-ownedeconomydevelopsquicklyandgraduallybecomesanimportantpropellingfactorforeconomicincrease.Accordingtorelativestatistics,privateowners,employeesandregisteredcapitalhavebeengrowingmorethan50percentperyearsince1992.Everyyear,privatelyownedeconomyproduceslargesumoftaxtothecountryandstrengthensnationalfinancialpower.Practicehasprovedthatthedevelopmentofprivately-ownedeconomyiscluetoreform..Thecharacterandstatusofprivately-ownedeconomyinChina1.Privately-ownedeconomyisthecapitalistcompositionisChinesesocialistsociety.Privately-ownedeconomyisakindofprivateownershipeconomyofCapitalismforthereistherelationshipbetweenexploiterandexploited.However,Chineseprivately-ownedeconomyderivesfromoursocialistsociety.ItisverydifferentfromtheprivateownershipeconomyisCapitalistsocietyonproducingbasis,operatingrange,exploitingextentandtherelationship3betweenlaborersandemployers.Theprivately-ownedeconomyinChinaisinfluencedandrestrictedbyeconomicalbasisandsuperstructureofsocialist.Therefore,itistheCapitalistcompositioninChinesesocialistsociety.2.Privately-ownedeconomyisanimportantpartofChinesesocialistmarketeconomyToinspectthestatusofprivately-ownedeconomydependsonproductivestandard.Thatistosay,thestatusofprivately-ownedeconomyshouldbedefinedinthelightofitscontribution.Sincethereformandopenpolicyarecarriedout,privately-ownedeconomyhasmaderemarkableachievement.State-ownedeconomygoesdownatthespeedof10-15percentperyearwhereasprivately-ownedeconomygoesupby20yearpercentperyear.Itsgreatsuccessinpropellingthedevelopmentofproductivitymakesitgainanimportantstatusinsocialistmarketeconomy..Thefunctionofprivately-ownedeconomy1.Privately-ownedeconomypropelsthedevelopmentofproductivityAccordingtothetheoryofthreefactorsofproductivity,Privately-ownedeconomyhasmadegreatcontributionsonexplorationandexploitationoflaborforce,subjectoflaborandmeansoflabor.Firstly,alotofidlelaborersareemployedintoprivately-ownedeconomy.Secondly,privately-ownedeconomyhasaddedmoretreasureforthesocietybymeansofefficientdistributionandrationalorganizationoflaborforce.Thirdly,4privately-ownedeconomyhasimprovedthewaysofmeansoflaborandbecomesthepacesetteroftechnologicalexploration.2.Privately-ownedeconomyenhancescomprehensivenationalpowerComprehensivenationalpoweristhemainincarnationofeconomiccompetenceofanationininternationalmarket.Aboveall,privately-ownedeconomyhasbecomeanewincreasingpointofnationaleconomy.Secondly,thedevelopmentofprivately-ownedeconomyurgesthereadjustmentofindustrialstructure.Thirdly,privately-ownedeconomymakescontributiontonationalandregionalfinance.3.Privately-ownedeconomybetterspeople'slivesPrivately-ownedeconomyhasimprovedpeople'slivesandhasfurtherfulfilledthesocialistproductiveaim.Firstly,privately-ownedeconomyraiseslaborers'incomes.Secondly,thedevelopmentofprivately-ownedeconomyenrichespeoplesmateriallives.Finally,privately-ownedeconomyenrichespeople'sspirituallives..Themainproblemsexistinginprivately-ownedeconomy1.Problemsinherentinprivately-ownedeconomyThefirstproblemconcernspeople'sconcept.Manypeopledon'tfullyunderstandmodernmarketeconomyanddon'tcompletelymasterstrategicmanagementofenterprises.Theyarealsodisinterestedinreformsonstate-ownedenterprisesand5strategicreorganization.Thesecondproblemisonmanagement.Itisshowedasthefollowing:beinglackofmanagementtalentsinprivately-ownedenterprisesmakesitdifficulttofulfillmodernmanagerialfunctions;Becauseofthelowqualityofemployeesinthes