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.
Ideology of the Communist Party of China
Some have likened the CCP's position under Deng to that of the Communist Party of the Soviet Union under Joseph Stalin when he introduced the planned economy. Adrian Chan, the author of "Chinese Marxism", opposes this view: "To Stalin, the development of productive forces was the prerequisite for the Soviet Union to become communist." He further argues that such a view does not make sense in light of the different situations; Stalin emphasized production because of the Soviet Union's backwardness in all areas, while in China, the reforms were seen as one way to further develop the productive forces. These interpretations, while not in agreement, shed light on the fact that Chinese socialism did change during the Deng era. In 1987, the "Beijing Review" stated that the achievements of socialism were "evaluated according to the level of the productive forces".