China
China's constitution states that The People's Republic of China "is a socialist state under the people's democratic dictatorship led by the working class and based on the alliance of workers and peasants," and that the state organs "apply the principle of democratic centralism." The PRC is one of the world's only socialist states openly endorsing communism (see Ideology of the Communist Party of China). The Chinese government has been variously described as communist and socialist, but also as authoritarian and corporatist, with heavy restrictions in many areas, most notably against free access to the Internet, freedom of the press, freedom of assembly, the right to have children, free formation of social organizations and freedom of religion. Its current political, ideological and economic system has been termed by its leaders as the "people's democratic dictatorship", "socialism with Chinese characteristics" (which is Marxism adapted to Chinese circumstances) and the "socialist market economy" respectively.
Socialist market economy
Julan Du and Chenggang Xu analyzed the Chinese model in a 2005 paper to assess whether it represents a type of market socialism or capitalism. They concluded that China's contemporary economic system represents a form of capitalism rather than market socialism because financial markets exist which permit private share ownership—a feature absent in the economic literature on market socialism—and because state profits are retained by enterprises rather than being distributed among the population in a social dividend or similar scheme, which are central features in most models of market socialism. They concluded that China is not a market socialist economy, but it is an unstable form of capitalism.