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.
Sino-Albanian split
Following the split with China, the Albanians proclaimed that their country was the only one in the world genuinely constructing a socialist society. In December 1977 Hoxha wrote an analysis of the Chinese revolution, declaring that, contrary to the Chinese view, "in general, the decisions and directives of the Comintern, first of all of the time of Lenin, were correct, and that those of the time of Stalin were correct, too." On the character of the revolution he wrote that, "In my opinion, and as far as I can judge, China carried out a bourgeois-democratic revolution of a new type through the national liberation armed struggle" and that "the revolution in China could not be carried through to the end. ... So long as the working class in China shared power with the bourgeoisie, this power, in essence, was never transformed into a dictatorship of the proletariat, and consequently the Chinese revolution could not be a socialist revolution."