Abstract
It was an inevitable result to choose “public ownership as the dominant form with development of various forms of ownership side by side” in the course of China’s economic reform toward a market-oriented economy. At the core of the theoretical foundation of the choice lies the understanding of ownership. Increasingly deepened understanding of ownership has gathered some consensus in theoretical studies of it; however, there have been always inaccurations of certain sorts in the understanding of the basic economic system in the primary stage of socialism up until now. These inaccurations have not only caused confusion in the society, but hindered the establishment and perfection of the basic economic system in the primary stage of socialism as well. These mistakes are closely associated with the economic development in and outside China, as well as with individual pursuits and beliefs.
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