The Present paper analyzes the feature and nature of economy of public ownership stated by the originators of Marxism notes the historic function and abuse of the traditional economy of public ownership and explains the connotation and function of China s economy of public ownership at the present stage.

However,there should be a limitation in the adjustment of the quantity and rate reduction in the economy of public ownership.

Nevertheless,China has also come across some problems unfavorable to the development of socialist public ownership economy.

The public ownership economy constructed the major economic base of a well-off society, which is an important stage in developing socialism.

Mao s scientific economic idea and knowledge forming during New Democracy period,the transition from New Democracy to socialism and the socialist construction period is realistic significant to build & complete socialist market economy and promote non-public economy.

In branch laws such as Criminal Law and Civil Law,there are objective differences between public economy and non-public economy,proper and legitimate protection of which gives rise to intensify controversy.

The protection of non-public economy is still not overall and also short of intensity.

Discussion on the limitation of non-public-owned economy s connotation;

How to Understand the Principal Status of Public-owned Economy;