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.
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.