Is the government owning a stake in a company the true form of socialism? Political scientists and economists generally distinguish several concepts: Socialism (broadly): An economic system in which the means of production (factories, utilities, mines, transportation, etc.) are owned or controlled by society as a whole, either through the state, worker cooperatives, or other forms of collective ownership. The extent and form of ownership vary widely among socialist theories. State ownership: When the government owns part or all of a company. This can occur under socialist governments, but it also occurs in many capitalist countries. State capitalism: A system where the government owns or controls major companies but they operate in a market economy, often for profit. Many scholars describe countries like China as having significant elements of state capitalism.
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