Fundamental economic institution is the total of social production relations, namely the economic basis which is the determining factor for defining social property.Due to the relatively low and unbalanced development of productivity and the economic rule that social production relations must match its productivity, China’s fundamental economic institution lies in the pattern with the public ownership as the main form and the joint development of diversified forms of ownership.The essence of public ownership refers to the fact that public ownership economy plays a decisive role in national economy while supplemented by other economies.The essence of socialism indicates the dominant role of public ownership and state owned enterprises. Thus,the cancellation of state-owned economy or ripping off the cornerstone is hardly bearable.Meanwhile,we shall explore and develop collective economies and encourage, support and guide non-public economies. Due to the duality of non-public economies,we shall never risk ignoring their political and economic divergence, turning a blind eye to their illegal performance,or even accepting their bribery and corruption which might collapse socialism.Hence, we shall strengthen guidance while we encourage the development of non-public economies.

Editor: Zhong Yao

Studies On Mao Zedong and Deng Xiaoping Theories.2016.No.6.