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.
Ideology of the Communist Party of China
Karl Marx argued that society went through different stages of development, and believed that the capitalist mode of production was the third stage. The stages were: ancient, based mostly on slavery; feudal; capitalist; socialist; and the communist mode of production. The attainment of true "communism" is described as the CCP's and China's "ultimate goal". While the CCP claims that China is in the primary stage of socialism, party theorists argue that the current development stage "looks a lot like capitalism". Alternately, certain party theorists argue that "capitalism is the early or first stage of communism." In official pronouncements, the primary stage of socialism is predicted to last about 100 years, after which China will reach another developmental stage. Some have dismissed the concept of a primary stage of socialism as intellectual cynicism. According to Robert Lawrence Kuhn, a China analyst, "When I first heard this rationale, I thought it more comic than clever—a wry caricature of hack propagandists leaked by intellectual cynics. But the 100-year horizon comes from serious political theorists".