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.
Russian Revolution
The Chinese Communist Revolution began in 1946 and was part of the ongoing Chinese Civil War. Marx had envisioned European revolutions to be intertwined with Asian revolutions in the mid-19th century with his 1853 "New York Tribune" article, "Revolution in China and Europe," in which he references the Chinese as people in "revolutionary convulsion," brought about by British economic control. The May Fourth Movement is considered a turning point where Communism took root in Chinese society, especially among intellectuals. China was officially made a communist country on October 1, 1949, resulting in the establishment of the People's Republic of China (which still remains to this day) with Chairman Mao Zedong at its head. China's current leaders retain that Mao "developed the theory of revolutionary socialism" whilst reformer Deng Xiopeng "developed the theory of building socialism with Chinese characteristics."