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.
Scientific Outlook on Development
The ideology is recognized by observers as a comprehensive response to the ideological gap left by the social problems that resulted from China's market economic reforms. Credit for the theory is given to former Chinese leader Hu Jintao and his administration, who was in power from 2002 to 2012. It is the newest slogan added to the idea of Socialism with Chinese characteristics ratified into the Communist Party of China's constitution at the 17th Party Congress in October 2007. It is lauded by the Chinese government as a successor and extension ideology to Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the "Three Represents".