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Socialist Market Economic System |
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Establish a socialist market economic system is a fundamental innovation in China's economic structure, and the fundamental way to achieve socialist modernization, it has its own characteristics and qualitative features.
First, the socialist market economy is different from the traditional planned economy.
The establishment of the socialist market economic system is a fundamental change of the traditional planned economy system, it is no longer the traditional planned economy, but market economy, it has the basic attributes of market economy.
1. Market entities¡¯ independence and equality. Whether individuals or enterprises are equal and independent economic entity, they have own economic decision-making powers, and independent undertake the risk of their decisions. This fundamental different from the economic model under the planned economic system which economic policy-making and undertake responsibility by government departments.
2. Market plays a basic role in allocating resources. In the condition of market economy, establish a variety of markets, form a unified and open market system, the formation of prices is market, to ensure the free movement of goods and factors of production, various economic resources from the market play a basic role in allocating. This is fundamentally different from the allocation of resources by the government under the planned economic system.
3. Indirect government's macro-control system. In he condition of market economy, government mainly through various no-administrative means to indirect macro-control economic activities. This is fundamentally different from the direct administrative measures to manage the economy under the traditional planned economy.
4. The market economy is an economy based on the legal system. The various activities of market economy are mainly regulated by various rules and regulations.
5. In international exchanges, it is necessary to follow the implementation of international conventions and guidelines.
Second, the socialist market economy is an economic formation which combined with the basic system of socialist in China's economy.
Firstly, from economical perspective, China's socialist market economy uses public ownership as the mainstay, including private economic and wide variety of economic sectors common development under the conditions of the market economy. China implement market economy is under the conditions of using public ownership as the main body. It is necessary to adhere to public ownership as the mainstay and also the implementation of market economy. Therefore, in the process of establishing a socialist market economic system, we must uphold and improve the various forms of public ownership economy, straighten out the relationship between the state and enterprises and further the transformation of their operational mechanism. Thus, a mixed-ownership structure with public ownership as the mainstay, particularly in the large and medium-sized key state-owned and state holding enterprises, will be better play their advantage, guarantee the rational distribution of national economy, conserve resources and orderly operation of market.
Secondly, from political perspective, China's socialist market economy is market economy which led by the Communist Party of China, effectively exercise macro-control by the government. Since the beginning of reform and opening up, China made great achievements that have attracted worldwide attention on all aspects, all of which are under the leadership of the party. The socialist market economy in China is an essential way to realize socialist modernization, it is a difficult undertaking, only under the leadership of the Communist Party of China, can it be successful. Meanwhile, in the process of establishing the socialist market economic system, the government must have a strong macro-control, through economic policies, economic legislation, planning guidance and the necessary administration, create a stable, security, orderly and equitable socio-economic environment for market economy.
Thirdly, from the objective perspective, China's socialist market economy must use achieve common prosperity as its fundamental principle. China implement market economy, allow a reasonable income gap, encourage some people to get rich first, but the ultimate goal is to achieve common prosperity, not lead to polarization, "the rich are getting richer, the poor are getting poorer."
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