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.
Communist-controlled China (1927–1949)
Communist-controlled China (), officially called the Soviet Zone (), was the part of the territories of China controlled by the Communist Party of China from 1927 to 1949 during the Republican era and the Chinese Civil War with Nationalist China. There were six soviet areas from 1927 to 1933: the Ching-kang-shan, the Central Soviet in Eastern Jiangxi on the border of Fujian, the O-Yu-Wan (Hubei-Henan-Anhui) Soviet, Hsiang-o-hsi (West Hupei and Hunan), and Hsiang-kan (Hunan-Kiangsi). The first soviet was the Hailufeng Soviet created in 1927. The Central Soviet was the main base of the Communist Party where Communist Party leader Mao Zedong issued a directive on 1 September 1931 for the Central Soviet to mass mobilize the region as a base area. As problems occurred over being able to control territories outside the Central Soviet, by 1933 a full transfer of Communist forces to the Central Soviet was achieved.