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.
Politics of China
Central government leaders must increasingly build consensus for new policies among party members, local and regional leaders, influential non-party members, and the population at large. However, control is often maintained over the larger group through control of information.
The Chinese Communist Party considers China to be in the initial stages of socialism. Many Chinese and foreign observers see the PRC as in transition from a system of public ownership to one in which private ownership plays an increasingly important role. Privatization of housing and increasing freedom to make choices about education and employment severely weakened the work unit system that was once the basic cell of Communist Party control over society. China's complex political, ethnic and ideological mosaic, much less uniform beneath the surface than in the idealized story of the Publicity Department of the Communist Party of China, resists simple categorization.