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.
Names of China
The name New China has been frequently applied to China by the Communist Party of China as a positive political and social term contrasting pre-1949 China (the establishment of the PRC) and the new socialist state, which eventually became Zhōnghuá Rénmín Gònghéguó (see below), known in English as the "People's Republic of China". This term is also sometimes used by writers outside mainland China. The PRC was known to many in the West during the Cold War as "Communist China" or "Red China" to distinguish it from the Republic of China which is commonly called "Taiwan", "Nationalist China" or "Free China". In some contexts, particularly in economics, trade, and sports, "China" is often used to refer to mainland China to the exclusion of Hong Kong, Macau and Taiwan.