After the establishment of the people's communes, there should be no rush to transform collective ownership into ownership by the whole people; for the time being it is better to adopt collective ownership, as this will help avoid unnecessary complications in the process of changing ownership.

Even after the transition to ownership by the whole people, the nature of such ownership, as in state-owned industrial enterprises, will still be socialist, that is, from each according to his ability, to each according to his work. Then, after a number of years, when social products have become greatly abundant, the communist consciousness and morality of the entire people have been raised to a much higher level, universal education has been popularized and raised, the differences between workers and peasants, between town and country and between mental and manual labour—legacies of the old society that inevitably remain in the socialist period—have gradually disappeared, and the remnants of unequal bourgeois right, which reflect these differences, have also gradually disappeared, and the function of the state is solely to protect the country from external aggression and plays no role internally, at that time Chinese society will enter the communist era in which the principle of from each according to his ability, to each according to his needs will be practised.