A Study on the Nongovernmental Economy of the China : Focused on the Policy, Systematic Environment and Private Ownership Choi, Ik-man For 30 years, the economic reform and open-policy of China has promoted market-oriented non-public ownership such as privately-owned enterprises. The privately-owned enterprises had enlarged and expanded, surfacing over state-owned enterprises (SOEs) in numbers of fields. However, many of the privately-owned enterprises had been directly or indirectly controlled by SOEs. Such circumstances should be emphasizedas socialistic and public ownership. In what kind of environment, the privately-owned enterprises have been built up and developed influenced by SOEs? Whether can the private ownership get a further protection in China? All these are the main issues to be discussed in this paper.The formation of private ownership and development of nongovernmental economy in China is caused by conscious policies of the Chinese government. Without the change of Ideology, people cannot accept that the private economy takes a grate part in socialistic society with the socialism as the basis. The change of policies has brought the encouraging and supporting nongovernmental economic environment forthe formation, existence and development of private ownership. That is to say, nongovernmental economy is based on systematic foundation of the Chinese economy. China is a country based on socialistic and/orpublic ownership, regardless of private ownership and large proportion of nongovernmental economic activities. The primary stage of socialism is under discussion. Chinese private enterprises, based on nongovernmental economy, are different from the typical market economy. In Chinese current environment, the private economy itself also has many difficulties. With the issues of development of nongovernmental economy in China, we still have more discussion and investigation to be made.