The essence of China’s reform is a transition from state social-ism to market socialism. As marketizstion will lead to the increase ofcivil ownership inevitably. the decrease of state-owned economy is ahistorical trend. According to the guiding principles for the reform ofstate-owned enterprise determined in the Fifteenth National PartyCongress, the most effective method of" releasing the small" is tohand over the management power of an enterprise to its employees.However," grasping the large’ isn’t tantamount to" preserving thelarge". As for different situation of different large enterprises, we mustuse different methods; supporting, merging or bankrupting. We musttouch upon the property right system if we want to transform outmodedlarge state-owned enterprise into modern enterprise. There is no es-sential difference between state exclusive company and original state-owned enterprise. Both absolute private capitalism and absolute statesocialism aren’ t successful is the 20th century. So, in the coming 21stcentury, mixed economy will be dominant;state-owned economy andnon-state-owned economy will develop together;public economyand private economy will infitrate each other; share system, coopera-tion system and share-cooperation system will be the main organizetion patterns.
