At the Fourth Plenary Session of the 19th CPC Central Committee, the system in which distribution according to work is dominant and a variety of modes of distribution coexist and socialist market economic system were upgraded to the basic socialist economic system, which is a major theoretical innovation of our Party. This shows that the socialist economic system with Chinese characteristics has been basically finalized after more than 40 years of reform and practice. In the future, it should be further improved in practice, so as to transform institutional advantages into governance advantages.This paper probes into the system advantages of the system of keeping public ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side, the system in which distribution according to work is dominant and a variety of modes of distribution coexist and socialist market economic system. This paper holds that to give full play to these institutional advantages, on the one hand, the innovation and reform of the basic economic system should not stop. On the other hand, we need to improve the national governance system according to the characteristics and requirements of the basic economic systems.
