During this period, two major problems were solved:
- The construction of the basic framework of the socialist market economic system. In November 1993, the Third Plenary Session of the 14th CPC Central Committee was held, arguing that the basic framework of the socialist market economic system consisted of the market’s main body, the market system, the macro-control system, the income distribution system, and the “five pillars” of the social security system. The overall implementation plan.tinplate sheets
- The problems of the combination of socialism and market economy. What is the basic socialist economic system? The report of the 15th National Congress of the Communist Party of China pointed out: “Public ownership is the main body and multiple ownership systems are developing together. It is a basic economic system in the primary stage of socialism in China.” From the perspective of the basic economic system, the individual and private sectors of the non-public economy themselves are generated from the market, and public ownership, especially state ownership, has a problem of how to integrate with the market economy. Because state-owned enterprises have not been a qualified market entity that operates independently and is responsible for profits and losses for a long time, it is necessary to find a combination of public ownership and market economy. After exploration, the Third Plenary Session of the 14th Central Committee in 1993 found the direction of reform and clearly stated: “The establishment of a modern enterprise system is an inevitable requirement for the development of socialized large-scale production and market economy, and is the direction for the reform of state-owned enterprises in China.” The shareholding system is an important organizational form of the modern enterprise system.