P.R.China's Privately-run Economy Development Research

During historical periods, privately-run economy has made active contribution to the construction of China's economy and social development. At the beginning of the establishment of P. R. China, privately-run economy, being a highly proportional national economy sector, played a very important role in the revival and development of national economy at that time. However, the party subsequently carried out a kind of socialist reconstruction to the privately-run economy, and further demolished the capitalism during the time of "Quick Leap" and "The Culture Revolution". Privately-run economy suffered destructive destroy and nearly died out. In this way public economy almost became the only form of China's national economy. But later, it is proved by the practice that the single form of ownership does not accord with the low-developed and multi-level productive forces of our country and result in negative influence on the development of national economy. Since the Third Session of the Eleventh National Congress of China Communist Party (CCP), under the guide of the ideological line of emancipating the mind and seeking truth from facts and "three benefits", and on the basis that the positive and negative experiences are summarized and the recognitions to privately-run economy are continually deepened, our party endlessly adjusts and improved the policies for privately-run economy, which results in privately-run economy revived in China and developed quickly.Since the new stages, our party has experienced a gradually developing process to understand the role and function of the privately-run economy in building socialism with Chinese characteristics. From allowing its existence to "complement "and "beneficial complement", and then to "keeping public ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side is the basic economic system in the primary stage of socialism", and then to "non-public economy is an important portion of socialist market economy of China. We should go on encouraging and guiding it such as privately or individually-owned business and keeping it develop soundly." Until CCP Sixteenth National Congress, it was said that "we must firmly encourage and support and guide non-public economy", which is not only the historic breakthrough of the ownership theory but also the substantial breakthrough of privately owned business. The Decision of Developing Socialist Market Economy by the Central Committee of China Communist Party approved by the Third Session of the CCP Sixteenth Central Committee eliminates the systematic obstacles, make non-public economy compete with the public economy on the same platform, and provides them sufficient support in sharing resources in policy aspect. The report of CCP Sixteenth National Congress confirms that new social classes such as owners of the private business are builder of socialism with Chinese characteristic. It is also written that "we should unify various classes who are contributing to the wealthy of our country, encourage their creativity, protect their legal right, andhonor elitists among them", which will inspire non-public business owners' activity and creativity in building a well-off society in an all-round way, and will further promote the sound development of the non-public sectors of the economy and the sound improvement of their owners.The privately-run economy and other non-public economy formally become a basic economic element of the primary stage of socialism and an important part of socialist market economy, which is significant for the development of the privately-run economy. The privately-run economy and other non-public economy not only play a more and more important role for creating social fortune, increasing governments' taxation, prospering markets in cities and towns and facilitating the public's life, but accept plenty of social unemployed people and laid-off workers from state-owned enterprises, which actively contributes to promote the social stability, to decrease reform cost of state-owned enterprises, and to establish a market economy. Especially, during the process that the planned economy is transferred to the market economy, they stimulate and drive the further prosperity of market economy, consequently, promote the development of national economy and the all-round advancement of society. With a good developing trend, the private sectors of the economy flourishes in the economy and gradually becomes an inneglected power and a new growth engine of productive force to promote China's development of productive force. However, regarding the existence and development of "the privately-run economy", we never establish the status it should have. It seems that we are afraid to discuss the "private", and that, so long as the private sectors of the economy is mentioned, our economy will be fully privated, the leading status of socialistic public sectors of the economy will be impacted, the basis of socialistic public ownership will be fluctuated and China's socialism property will be changed. Therefore, we currently use the name of "individually-run economy" instead of "the privately-run economy".The existence of the privately-run economy is a reality that we have to face. This paper systematically discusses the conditions, types, properties, status and role, development situation, experiences and lessons, and developing trend of privately-run economy in China. In order to properly recognize and study the privately-run economy, and guide, this paper emphasizes and expounds the establishment and development of privately-run economy at a new stage, which is coincidental with the current practice to develop the privately-run economy, is helpful to disclose the rule that China's privately-run economy develops in the future, and promote the privately-run economy to develop toward a healthy, stable and fast direction. Further, this paper is significant for us, all roundly and properly, to recognize and understand that, in order to quicken China's modernization and achieve the magnificent goal of building a well-off society in an all-round way proposed by CCP Sixteenth National Congress, the basic economic system at the current stage in China is to keep public ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side, to develop the socialismproductive force and to mobilize all active factors.Privately-run economy has existed in China for years. This paper discusses the privately-run economy in the People's Republic of China, therefore, we do not look back the history and transfer of privately-run economy in China, but start discussing those existed since 1949. The paper is divided into six chapters and 23 sections. The actualities and roles of privately-run economy, and the party's policies for it are reviewed and summarized in the part of Introduction. Chapter Two discusses its types, properties and characteristics. Chapter Three discusses the situation and historical background resulted in the privately-run economy, especially focusing on the theories, historical background, reality basis and economic situation resulted in it. Chapter Four summarizes its historical status and roles at the beginning of the establishment of the People's Republic of China, during the time of period of socialism transformation and in the new stage, respectively. Chapter Five reviews our party's policies for it at the beginning of the establishment of the People's Republic of China and during the time of period of socialism transformation, and especially expounds our party's experiences and lessons for developing privately-run economy. Chapter Six analyzes developing trends of China's privately-run economy, and expounds the objective foundation for its development, its basic developing status and movement, the issues restricted its development, and the political guide increased for privately-run economy and other non-public economy.The paper makes the following innovations:The paper systematically and objectively expounds privately-run economy's establishing situations, types, characteristics, properties, status and roles at different historical stages in China, and discusses its developing status, experiences and lessons and developing trends.The paper objectively comments the reality that privately-run economy exists in China, and distinguishes and analyzes the concepts of "privately-run economy", "individually-run economy" and non-public economy.The report of the CCP Sixteenth National Congress points out that, private entrepreneurs and other non-public economic people are part of those that build the socialism with Chinese characteristics, which profoundly discloses their social and political attribute. The paper discusses their political attribute from another angle of view, proposes the following new points of view:Private entrepreneurs and other non-public economic people have an equal political status with the general workers;Approved by the socialism system, a legal "income gap" exists, which indicates the income allocation of basic economy system at primary stage of socialism that keeps ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side, and promotes the development of socialism productive force at socialism primary stage;The same goal servicing for socialism production makes the relationship between private entrepreneurs and their employees become the today's "cooperation", from the previous poignant "opposes".The concordant unification of party's basic and top-fight creeds is the necessary requirement and best choice to develop productive force at current stage and to achieve a common wealth.From the fields of legal environment, corporate improvement, market competition system, operation pattern of private enterprises and growing environment for private entrepreneurs, the paper systematically analyzes issues that should be noticed during developing privately-run economy, and have a new understanding with the relationship between privately-run economy and public economy. Further, it raises the opinions that privately-run economy and other non-public economy will play an important role for building a well-off society in an all-round way, and that, we should foster property concept of market economy, increase political guide, and create a favorable social environment for private entrepreneurs and other non-public economic people to grow as excellent ones that build socialism with Chinese characteristics.With the author's working experience and on the basis of profound reality analysis, the paper deeply analyzes the property of privately-run enterprises at current stage and raises the author's new cognition. This paper studies the political attributes and growth of privately-run economy and private entrepreneurs, and combines the privately-run economy and public economy for study. It is a new characteristic of the paper to expound privately-run economy through the way combining history and argument.