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.
Red
The Communist Party of China, founded in 1920, adopted the red flag and hammer and sickle emblem of the Soviet Union, which became the national symbols when the Party took power in China in 1949. Under Party leader Mao Zedong, the Party anthem became "The East Is Red", and Mao Zedong himself was sometimes referred to as a "red sun". During the Cultural Revolution in China, Party ideology was enforced by the Red Guards, and the sayings of Mao Zedong were published as a small red book in hundreds of millions of copies. Today the Communist Party of China claims to be the largest political party in the world, with eighty million members.