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.
Marxism–Leninism
In the 1950s, the de-Stalinisation of the Soviet Union was ideological bad news for the PRC, because Russian interpretations and applications of Leninism and Orthodox Marxism contradicted the Sinified Marxism–Leninism of Mao Zedong — his Chinese adaptations of Stalinist interpretation and praxis for establishing socialism in China. To realise that leap of Marxist faith in the development of Chinese socialism, the Communist Party of China developed Maoism (the Thought of Mao Zedong) as the official state ideology of the People's Republic of China. As the specifically Chinese development of Marxism–Leninism, Maoism illuminated the cultural differences between the European-Russian and the Asian-Chinese interpretations and practical applications of Leninism and Orthodox Marxism in each country. The political differences then provoked geopolitical, ideological, and nationalist tensions, which derived from the different stages of development, between the urban society of the industrialised USSR and the agricultural society of the pre-industrial PRC. The theory-vs-praxis arguments escalated to theoretic disputes about Marxist revisionism, and provoked the Sino-Soviet split (1956–1966), and the PRC and the USSR broke their international relations (diplomatic and political, cultural and economic).