Pattern of Ownership

According to China's constitution, the state-owned system is in a dominant position in the country, but it can co-exist with other ownership systems.

China's distribution system takes 'to each according to his work', as the main system and other systems must co-exist with this principle. Currently, China's ownership systems include state-owned, collective-owned, private, self-employed, co-operative, share-holding, foreign invested and the Hong Kong and Macao invested economies.

In the state-owned economy, the means of production belong to the country. In the collective economy the means of production belong to the collective unit. Private business refers to w

Pattern of Ownership

hen the means of production which is owned by an individual and a business based on employment of labourers. In the self-employed economy, the means of production is owned by the individual and the business is based on the labour of the owner himself or herself. The co-operative economy refers to different enterprises or enterprises and state-owned institutions jointly investing in an economic entity. The share-holding economy refers to the means of production based on a share-holding enterprise, whose registered capital is provided by all shareholders and whose operation is based on share ownership.

The foreign investment economy refers to the means of production being jointly owned by foreign and Chinese companies. Investors run enterprises in the form of joint-ventures according to the laws and regulations on foreign-related business within the territory of China. There are three kinds of joint-ventures according to different ownership formats, including the Sino-foreign joint venture, Sino-foreign co-operative joint venture and foreign owned enterprise.

The Hong Kong and Macao invested economy refers to enterprises set up by Hong Kong, Macao and Taiwan investors in the form of joint-ventures according to the laws and regulations about foreign-related business of the People's Republic of China. There are also three kinds of joint venture, according to different ownership formats, including contractual joint venture, cooperative joint venture, and the private-owned enterprise.

The Chinese constitution stipulates that any organization or individual is prohibited from undermining the collective system in China though legal right and interests of the non-public economy, are protected.