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.
Chinese Soviet Republic
The Chinese Soviet Republic (CSR), also known as the Soviet Republic of China or the China Soviet Republic, is often referred to in historical sources as the Jiangxi Soviet (after its largest component territory, the Jiangxi-Fujian Soviet). It was established in November 1931 by future Communist Party of China leader Mao Zedong, General Zhu De and others, and it lasted until 1937. Discontiguous territories included the Northeastern Jiangxi, Hunan-Jiangxi, Hunan-Hubei-Jiangxi, Hunan-Western Hubei, Hunan-Hubei-Sichuan-Guizhou, Shaanxi-Gansu, Szechuan-Shensi, Hubei-Henan-Anhui, Honghu and Haifeng-Lufeng Soviets.
Mao Zedong was both CSR state chairman and prime minister; he led the state and its government. Mao's tenure as head of a "small state within a state" gave him experience in mobile warfare and peasant organization; this experience helped him accomplish the Communist reunification of China during the late 1940s. The CSR was eventually destroyed by the Kuomintang (KMT)'s National Revolutionary Army in a series of 1934 encirclement campaigns. Following the Xi'an Incident of December 1936, the Communists and Kuomintang formed an uneasy "United Front" to resist Japanese pressure, which led to the Communists recognizing at least for the moment Chiang Kai-shek as China's leader and the official dissolution of the Soviet Republic on 22 September 1937.