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.
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.