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.
Ideology of the Communist Party of China
In a parliamentary democracy, the only way for a party to gain legitimacy is through elections, but due to the involvement of the bourgeoisie in the election process this legitimacy is not considered as genuine. The CCP gained legitimacy, Yang asserts, through its victory in the "Chinese democratic revolution". Yang claims that the introduction of constitutionalism in any form would lead to the fall of the CCP, and even claims that socialist constitutionalism of the Soviet Union and the former socialist states was a main factor contributing to their downfall.