About the Property Rights Basis for the Socialist Market Economy

The micro-basis for the market economy is not a set private system but a system of the alienable and exchangeable property rights based on the individual ownership. The market economy is the inevitable development of the concentrated and closed ownership to the decentralized and open ownership. The traditional state ownership is a closed one inadaptable to the market economy. As economic organizations, state-owned enterprises should withdraw from competition, but that does not mean the state-owned economic sector should also withdraw from competition. What the sector should do is to change its ways of competition. Under the conditions of the socialist market economy, it is a basic task of the reform of the state-owned enterprises to establish mutually separated and independent individual property rights.