Socialist market economy
The socialist market economy (SME) is the economic system and model of economic development employed in the People's Republic of China. The system is based on the predominance of public ownership and state-owned enterprises within a market economy. The term "socialist market economy" was first used during the 14th National Congress of the Communist Party of China in 1992 to describe the goal of China's economic reforms. Originating in the Chinese economic reforms initiated in 1978 that integrated China into the global market economy, the socialist market economy represents a preliminary or "primary stage" of developing socialism. Despite this, many Western commentators have described the system as a form of state capitalism.
Sino-Soviet relations
After 1946, the CCP was increasingly successful in the Civil War. On October 1, 1949, the People's Republic of China was proclaimed by Mao Zedong, and by May 1950 the KMT had been expelled from Mainland China, remaining in control of Taiwan. With the creation of the People's Republic of China, the supreme political authority in the two countries became centred in two communist parties, both espousing revolutionary, Marxist–Leninist ideology: the Communist Party of China and the Communist Party of the Soviet Union.