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.
History of the People's Republic of China (1949–1976)
According to Hua-yu Li, writing in "Mao and the Economic Stalinization of China, 1948–1953" in 1953, Mao, misled by glowing reports in "History of the Communist Party of the Soviet Union (Bolshevik): Short Course", authorized by Stalin of social and economic progress in the Soviet Union, abandoned the liberal economic programs of "New Democracy" and instituted the "general line for socialist transition", a program to build socialism based on Soviet models. He was reportedly moved in part by personal and national rivalry with Stalin and the Soviet Union.