Private economy refers to the economic component with the relationship of employment and labor, that is, private enterprises with capitalist nature. Legally speaking, private enterprises refer to profit-making economic organizations established or controlled by natural persons and based on wage labor. Private economy is a non-public economy. The reality includes three parts: individual economy, private economy and foreign capital economy.
Private or private economy is not a concept of ownership. From the management level, it refers to the economy with the people as the main body of operation. The corresponding concept of private or private economy can only be state-owned or government-run. Therefore, as long as it is not a state-owned or government-run economy, it is a private or private economy. In the private economy, it includes not only all private ownership economies, but also other public ownership economies besides the state-owned economy, such as township enterprises, cooperative economy, community ownership economy, association ownership economy and foundation ownership economy.
Privatization is not the same as privatization. Under the realistic conditions in China, private economy includes individual industrial and commercial households, private enterprises, private scientific and technological enterprises, foreign-funded economy, township enterprises, cooperative enterprises or joint-stock cooperative enterprises, joint-stock enterprises in China and state-owned private enterprises.
Private enterprises are collective ownership and generally appear in the form of joint-stock system. Private enterprises are enterprises run by individuals, also called private enterprises.