Socialist market economy
The socialist market economy is seen by the Communist Party of China as an early stage in the development of socialism (this stage is variously called the "primary" or "preliminary" stage of socialism), where public ownership coexists alongside a diverse range of non-public forms of ownership. The Communist Party of China maintains that despite the co-existence of private capitalists and entrepreneurs with public and collective enterprise, China is not a capitalist country because the party retains control over the direction of the country, maintaining its course of socialist development. Proponents of this economic model distinguish it from market socialism as market socialists believe that economic planning is unattainable, undesirable or ineffective and thus view the market as an integral part of socialism whereas proponents of the socialist market economy view markets as a temporary phase in development of a fully planned economy.
Politics of China
Central government leaders must increasingly build consensus for new policies among party members, local and regional leaders, influential non-party members, and the population at large. However, control is often maintained over the larger group through control of information.
The Chinese Communist Party considers China to be in the initial stages of socialism. Many Chinese and foreign observers see the PRC as in transition from a system of public ownership to one in which private ownership plays an increasingly important role. Privatization of housing and increasing freedom to make choices about education and employment severely weakened the work unit system that was once the basic cell of Communist Party control over society. China's complex political, ethnic and ideological mosaic, much less uniform beneath the surface than in the idealized story of the Publicity Department of the Communist Party of China, resists simple categorization.