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.
History of foreign relations of the People's Republic of China
By the second half of the 1980s, China's participation in international organizations reflected the two primary goals of its independent foreign policy: furthering domestic economic development through cooperation with the outside world and promoting peace and stability by cultivating ties with other nations on an equal basis. As expressed by Zhao Ziyang in a 1986 report to the National People's Congress, "China is a developing socialist country with a population of over 1 billion. We are well aware of our obligations and responsibilities in the world. We will therefore continue to work hard on both fronts, domestic and international, to push forward the socialist modernization of our country and to make greater contributions to world peace and human progress."