Recently, Liu He, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, said in an interview with reporters on current economic and financial hotspots that China’s state-owned enterprises and private enterprises have formed a complete industrial chain, which is a new theory of ownership dependence structure that effectively guides China's economic practice in the new era.Modern industrial chain refers to a chain-like association form objectively formed among various industrial departments based on certain technical and economic association relationship. The concept of modern industrial chain can deepen our understanding of the contemporary economic system with Chinese characteristics: on the industrial level, private enterprises and state-owned enterprises are not at the same level of competition; in terms of industrial correlation, state-owned enterprises and private enterprises are inseparable; and on the degree of meeting demand, state-owned enterprises are not sufficiently sensitive and timely to market changes compared with private enterprises.To understand the mutual existence and dependence of ownership structure by the concept of modern industrial chain does not mean that the position and distribution of state-owned enterprises and private enterprises in the industrial chain are fixed and unchanging. On the contrary, they can form mutual assistance relationship in the complex market operation.
