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.
Ideology of the Communist Party of China
Despite admitting that globalization developed through the capitalist system, the party's leaders and theorists argue that globalization is not intrinsically capitalist, the reason being that, if globalization were purely capitalist, it would exclude an alternate socialist form of modernity. Globalization, as with the market economy, therefore does not have one specific class character (either socialist or capitalist) according to the party. The instance that globalization is not fixed in nature, comes from Deng's insistence that China can pursue socialist modernization by incorporating elements of capitalism. Because of this there is considerable optimism within the CCP that despite the current capitalist dominance of globalization, globalization can be turned into a vehicle supporting socialism. This event will occur through capitalism's own contradictions. These contradictions are, according to party theorist Yue Yi from the Academy of Social Sciences, "that between private ownership of the means of production and socialised production. This contradiction has manifested itself globally as the following contradictions; the contradiction between planned and regulated national economies and the unplanned and unregulated world economy; the contradiction between well-organized and scientifically managed Transnational Corporations (TNCs) and a blindly expanding and chaotic world market; the contradiction between the unlimited increase of productive capacity and the limited world market; and the contradiction between sovereign states and TNCs." It was these contradictions, argues Yue Yi, that led to the dot-com bubble of the 1990s, that has caused unbalanced development and polarization, and widened the gap between rich and poor. These contradictions will lead to the inevitable demise of capitalism and the resultant dominance of socialism.