In early 1956, the central government began to implement a system of joint state-private ownership to govern capitalist industry and commerce. Reforms were intended to take place in two stages: joint state-private ownership of individual enterprises would eventually lead to joint ownership of whole industries. Over time the share of state ownership was intended to grow relative to the private sector. The government also sent representatives to take charge of private enterprises.

(China.org.cn September 15, 2009)