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.
Ideology of the Communist Party of China
In 2007, Hu Jintao noted in a speech that "people's democracy is the lifeblood of socialism ... without democracy there can be no socialism, and there can be no socialist modernization." To be clear, democracy, in the CCP's understanding of the word, does not mean democracy as practiced in liberal democracies. Instead it means the creation of a more balanced, equal society, "with socialism bringing about social justice. The CCP still believes that the Party and country is led by the unity of the peasant and working classes. However, for the further development of democracy and socialism, stability is needed.
Yang Xiaoqing in the article "A Comparative Study of Constitutional Governance and the People's Democratic Regime", published in the party's journal "Seeking Truth from Facts" in 2013, argues that the people's democratic dictatorship and Western constitutional government are mutually exclusive. She notes, in line with classical Marxist theory, that constitutionalism in general fits with the capitalist mode of production and bourgeois democracy, and does not fit in with China's socialist system of people's democratic dictatorship. Constitutional government has a market economy in which private property plays the predominant role, as the basis unlike the Chinese socialist market economy in which public ownership is the basis. The rallying cries of the liberal revolutions in the 17th and 18th century she notes was "Private property is sacred and inviolable, and constitutional governance was established around this premise. While things have changed since the 17th and 18th centuries the basic premise remains the same in Western societies; a small government which protects the interests of private property.