mic plan. How to combine "market" and "socialist"?
According to Deng Xiaoping, socialism has two principles: one is that the economies with various types of properties develop together, of which publicly owned property is a main part. The other is that all people become rich; polarization does not exist.
As he said, "The essential disparity between socialism and capitalism does not rest on the ratio of plan to market. Planning does not equal socialism, for capitalism has plans. Market does not equal capitalism, for socialism has markets. Both planning and markets are tools to develop the economy." That is to say, the combination of "market" and "socialist" is the socialist market.
The word "socialist market" is fundamentally meaning that surmounts the limitations of capitalism, and combines the superiority of the economic system of socialism with the advantages of the market economy (Xiaoqin DING 2009). According to the article 6 of the constitution of the People's Republic of China, "The basis of the socialist economic system of the People's Republic of China is socialist public ownership of the means of production, namely, ownership by the whole people and collective ownership by the working people. The system of socialist public ownership supersedes the system of exploitation of man by man; it applies the principle of "from each according to his ability, to each according to his work." In the primary stage of socialism, the state upholds the basic economic system with the public ownership remaining dominant and diverse forms of ownership developing side by side, and upholds the distribution system in which the distribution according to work remains dominant and a variety of modes of distribution coexist." That is to say, the state, party and people insist the relations of socialist production, adjust mechanisms like the market to the situation and guarantee against a capitalist restoration. Socialist market economy is to ensure the society equity, while the market assures economic efficiency. And the most important thing is, the characteristic of planning is not missing, it just changes to a macroeconomic regulation, which is stronger than that in any capitalist country.
The Chinese growth is different from others countries
Why China can growth by applying socialist market economy, but other country cannot? In this section, I would like to talk about the differences between China and other countries.
The growth of China is unique and is different from any other country's development. Compare with the preeminent command economy, Soviet Union, the main differences between China and Soviet Union are the aspects of "dealing with class struggle in a socialist society and how to build a new society," "commodity markets and capitalism," "whether to adhere to the people first or to State supremacy, and whether to adhere to scientific development or to 'voluntarist' development." Chinese style socialism is completely different with the Soviet style of socialism; it is a close integration of Marxism with China's own situation and a definitely Chinese style socialist path and system of theories. So we called that "Chinese style socialism" or "socialism with Chinese characteristics". (The China Model 2010)
In fact, China has made a rapid progress is due to the country insists on independence and sovereignty, and also it insists on following the socialist path. With such a foundation, China absorbs capital, technology, and experience from the developed countries. China has refused to destroy its
