How to understand "real economy"? Is the real economy equal to the industrial economy?

The real economy refers to the economy that people create on the earth by using tools through thoughts. Including the production and circulation of material and spiritual products and services. Including agriculture, industry, communications, commercial services, construction, cultural industries and other material production and service sectors. It also includes the production and service departments of spiritual products such as education, culture, knowledge, information, art and sports.

There are three basic criteria to define the real economy, that is, whether it has the function of providing basic means of subsistence, improving people's living standards and enhancing people's comprehensive quality. In other words, the economy directly related to people's basic survival and quality development is the real economy.

The real economy has always been the foundation for the survival and development of human society.

Economic transformation stage

First of all, in the process of economic liberalization, China has experienced a gradual reform process from rural areas to cities. In this process, the rural reform centered on the household contract responsibility system enabled farmers to obtain land use rights, and the reform centered on liberalizing the independent management rights of state-owned enterprises initially freed state-owned enterprises from the shackles of the planned economic system, and at the same time enabled the non-state-owned economy to develop rapidly.

Second, the reform of economic marketization has pushed state-owned enterprises to the market and competed with other ownership enterprises.

Third, the economic privatization reform emphasizes the importance of property rights, allows greater economic freedom, and makes the non-state-owned economy an important force in China's economy.

Fourthly, the reform of economic internationalization has enabled China's economy to accelerate industrialization, urbanization and marketization, face the challenges of the new world economy, gradually transition to international economic integration, and participate more actively in world economic integration.