The basic contradiction of socialism has its own character and feature,which decides socialist fundamental task to develop productivity,which has a logical requirement for the establishment of the contradiction between the slow social production and people's increasing need for material and culture as the major contradiction at the primary stage of socialism. Under socialist circumstances,the release and development of productivity as well as adjustment of relations of production goes directly in one with the protection and realization of people's fundamental interest. After the Third Session of 11th NPC,the basic policies have been established to correctly deal with the major contradiction and other contradiction at the primary stage of socialism within the basic line and basic program.