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.
Communist Party of China
The Communist Party of China (CPC), also referred to as the Chinese Communist Party (CCP), is the founding and ruling political party of the People's Republic of China. The Communist Party is the sole governing party within mainland China, permitting only eight other, subordinated parties to co-exist, those making up the United Front. It was founded in 1921, chiefly by Chen Duxiu and Li Dazhao. The party grew quickly, and by 1949 it had driven the nationalist Kuomintang (KMT) government from mainland China after the Chinese Civil War, leading to the establishment of the People's Republic of China. It also controls the world's largest armed forces, the People's Liberation Army.