Legal basis: Constitution of People's Republic of China (PRC).
Article 6 People's Republic of China (PRC)'s socialist economic system is based on socialist public ownership of the means of production, that is, ownership by the whole people and collective ownership by the working people. Socialist public ownership eliminates the system of exploitation by others, and implements the principle of distribution according to work and from each according to his ability. In the primary stage of socialism, the state adheres to the basic economic system with public ownership as the main body and various forms of ownership developing together, and the distribution system with distribution according to work as the main body and multiple modes of distribution coexisting.
Article 7 The state-owned economy, that is, the socialist economy under ownership by the whole people, is the leading force of the national economy. The state guarantees the consolidation and development of the state-owned economy.