On The Theoretical Foundation Of China's Socialist Market Economy

Since the late 20th century, the world economy has entered a period of great changes. The process of economic globalization will further accelerate, and the market economy system was recognized universally so that economic operating rules tend reunification. Integration and mutual penetration of East-West economy and culture not only made a series of major new projects for the development of economics, but also create social needs for various economy theories an integrated successor. It will become a major irreversible trend in the process of economics development that integrated and learn from the Marxist economic theories with the West mainstream economic forces each other. As far as I known, the current academic research for theoretical basis of the socialist market economy shows that it have not yet formed a unified understanding. This article tries to form a theory of socialist market economy with Chinese characteristics and issue a more comprehensive understanding through in the process of learning from theoretical development of Western market economy and criticizing and succeeding the Marxist economic theory. The theory of Western market economy developed from the theory of laissez-faire market economy to macro-control economy, and then to mixed economy. The process of theoretical development in three phases adopted socialist economic theory in essence. Chinese criticized and succeeded the Marxist economic theory in the process of practice, and then innovated the Marxist economic theory, so finally formed the Socialist market economic theory with Chinese characteristics—compatibility and complement between the Marxist economic theory and the West mainstream economic theory system. Final conclusion: The practice of China's socialist market economy is the objective and fundamental basis of establishing theoretical system of China's market economy.