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On the first level the scheduler decides which VE to give CPU time slice to, based on per-VE <code>cpuunits</code> values. On the second level the standard Linux scheduler decides which process to run in that container, using standard Linux process priorities and such.
The OpenVZ administrator can set up different values of <code>cpuunits</code> for different containers, and the CPU time will be given to those proportionally.
Also there is a way to limit CPU time, e.g. say that this container is limited to, say, 10% of CPU time available.