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.
Chinese Soviet Republic
The Chinese Soviet Republic (CSR), also known as the Soviet Republic of China or the China Soviet Republic, is often referred to in historical sources as the Jiangxi Soviet (after its largest component territory, the Jiangxi-Fujian Soviet). It was established in November 1931 by future Communist Party of China leader Mao Zedong, General Zhu De and others, and it lasted until 1937. Discontiguous territories included the Northeastern Jiangxi, Hunan-Jiangxi, Hunan-Hubei-Jiangxi, Hunan-Western Hubei, Hunan-Hubei-Sichuan-Guizhou, Shaanxi-Gansu, Szechuan-Shensi, Hubei-Henan-Anhui, Honghu and Haifeng-Lufeng Soviets.
Mao Zedong was both CSR state chairman and prime minister; he led the state and its government. Mao's tenure as head of a "small state within a state" gave him experience in mobile warfare and peasant organization; this experience helped him accomplish the Communist reunification of China during the late 1940s. The CSR was eventually destroyed by the Kuomintang (KMT)'s National Revolutionary Army in a series of 1934 encirclement campaigns. Following the Xi'an Incident of December 1936, the Communists and Kuomintang formed an uneasy "United Front" to resist Japanese pressure, which led to the Communists recognizing at least for the moment Chiang Kai-shek as China's leader and the official dissolution of the Soviet Republic on 22 September 1937.