Several Misunderstandings on the Strategic Adjustment of State-Owned Economy

To speed up the strategic adjustment of state-owned economy, it is necessary to settle conceptual problems in theory at first. The lowering percentage of state-owned economy does not necessarily mean the reduction of socialist elements; though state-owned capital and paid transfer mean privatization according to international norms, China will never allow this compromise the leading role of public ownership; it is a matter of course for state owned economy to gradually withdraw from competition; the leading role of state-owned economy lies not in gaining more control of private capital through shareholding but in preventing the monopolistic control of private capitals over national strategies and the people's livelihood.