Politics of China
China practices a form of democracy that it calls socialist consultative democracy. Socialist Consultative Democracy is the form of democracy that exists in the People's Republic of China, though at least one source says that this form of democracy was created by the Communist Party of China. According to an article on Qiushi Journal, "Consultative democracy was created by the CPC and the Chinese people as a form of socialist democracy. In this sense, consultative democracy represents the grand product of our efforts to enrich and develop Marxist theories on democracy. Socialist consultative democracy exhibits distinctive features as well as unique advantages. Not only representing a commitment to socialism, it carries forward China’s fine political and cultural traditions. Not only representing a commitment to the organizational principles and leadership mode of democratic centralism, it also affirms the role of the general public in democracy. Not only representing a commitment to the leadership of the CPC, it also gives play to the role of all political parties and organizations as well as people of all ethnic groups and all sectors of society".
State capitalism
Analysis of the "Chinese model" by the economists Julan Du and Chenggang Xu finds that the contemporary economic system of the People's Republic of China represents a state capitalist system as opposed to a market socialist system. The reason for this categorization is the existence of financial markets in the Chinese economic system, which are absent in the market socialist literature and in the classic models of market socialism; and that state profits are retained by enterprises rather than being equitably distributed among the population in a basic income/social dividend or similar scheme, which are major features in the market socialist literature. They conclude that China is neither a form of market socialism nor a stable form of capitalism.