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.
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."