Socialist market economy
| Socialist market economy | |||||||
| Simplified Chinese | 社会主义市场经济 | ||||||
|---|---|---|---|---|---|---|---|
| Traditional Chinese | 社會主義市場經濟 | ||||||
|
|||||||
| Transcriptions | |
|---|---|
| Standard Mandarin | |
| Hanyu Pinyin | Shèhuìzhǔyì Shìchǎng Jīngjì |
The socialist market economy is the economic model employed by the People's Republic of China. It is based on the dominance of the state-owned sector and an open-market economy, and has its origins in the Chinese economic reforms introduced under Deng Xiaoping. The ideological rationale is that China is in the primary stage of socialism, an early stage within the socialist mode of production, and therefore has to adapt capitalist techniques to thrive. Despite this, the system has widely been cited as a form of state capitalism.
After the Great Leap Forward (1958–1961) and the ousting of the Gang of Four from power, Chairman Deng Xiaoping was willing to consider market-based methods of economic growth so as to revitalise China's economy and find an economic system compatible with China's specific conditions. However, in doing so, he remained committed to the centralized control and the one-party state central to Leninism.
The socialist market economy was a concept introduced by Deng Xiaoping in order to incorporate the market into the planned economy in the People's Republic of China. Deng first used the term during a meeting with vice chairman of the US Encyclopædia Britannica Company Frank Gibney and director of the East Asian Studies Institute of Montreal's McGill University Professor Paul Lin Daguang, asking: "why can't there be a market economy in socialism"? We can't say that this is capitalism. Our planned economy is in the primary position; it integrates with the market economy, but this is a socialist market economy."[1] The concept was later adopted by the Đổi Mới in Vietnam. Following its implementation, this economic system has supplemented the centrally planned economy in the People's Republic of China, with high growth rates in GDP during the past decades having been attributed to it. Within this model, privately owned enterprises have become a major component of the economic system alongside the central state-owned enterprises and collective / township village enterprises.
...
Wikipedia