Deng Xiaoping's Socialist Market Economic Theory

Deng Xiaoping's Socialist Market Economy Theory has rich connotations and is broad and profound. It's significant contributions reflect the three following concepts:1. A market economy can and should be developed in a socialist country. The concept explicitly acknowledges the compatibility of a market economy within a socialist system. Deng Xiaoping recognized that both a state planned economy and a market economy could be utilized simultaneously as a means of resource allocation within a socialist society. In this first point Deng Xiaoping denies the social system attribute as the exclusive factor of a market economy and accepts the dynamic integration of planning and market together; 2. The development of a socialist market economy is beneficial to the development of productivity and prosperity of state economy. Deng develops the productive forces criterion for a market economy development, points out that the development of a market economy is the essential demand of socialism, encourages to absorb and draw upon fruits of any civilization or ways to affluence and flourishing developed by human society; 3. Chinese socialist market economy is demonstrated to have its own characters, which includes the dominance of the public sector economy, common prosperity in distribution system, more effective macro-economy control theory, and political guarantee for the development of a socialist market economy. Deng Xiaoping's Socialist Market Economy Theory is of great theoretical and practical significance. It enriches Marx's economic theory greatly, fundamentally solves the problem of socialism construction under China's actual condition, induces new developing mode and finally finds the way to demonstrate the advantages of socialism.