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On the Theory of Socialist Market Economy

Title: On the Theory of Socialist Market Economy

Author: Liu Guoguang

Translated by Sun Weiwei

ISBN: 978-1-84464-604-3

Ebook ISBN: 978-1-84464-605-0

Hardback-498 Pages

November 2020


£75 €90 $120


All articles in this book are centered on one theme, i.e., the relations between “socialism” and “market economy” in the process of economic restructuring. That is to say, that this book is focused on one issue as to how to improve and develop China’s socialist economic system through means of market economy.

Most of the articles selected in this collection are research reports, policy suggestions and theoretical works that have had a direct impact on China's economic reform and policy-making in the past 30 years. It shows the readers the thinking and elaboration of the reform direction at that time, the interpretation of the central policy, and the theoretical confrontation in the policy exploration, which has important research value, literature value and theoretical value



Part I Establishment of the Theory of Socialist Commodity/Market Economy in China

On the Theory of Socialist Commodity Economy

On Several Issues Concerning the Theory of Socialist Market Economy

Historical Transition from Planned Economy to Socialist Market Economy—marking the 20th anniversary of the Third Plenary Session of the 11th Central Committee of the Chinese Communist Party

Part II Origins and Development of China’s Socialist Market Economy

A Retrospect of China’s Explorations from the Third Plenary Session of the 11th Central Committee of the CPC to the Establishment of Socialist Market Economy

The Evolving Relationship between Planning and Market over 30 years—From the perspective of my personal experiences

Planning and Market in China over the past Six Decades since the Founding of PRC—China’s Exploration and Establishment of the Operational Mechanism of Socialist Economy with Chinese Characteristics

Part III China’s Socialist Market Economy: an Organic

Unity between “Socialism” and “Market Economy”

An Organic Unity between “Market Economy” and “Socialism”—A development road that China should rightfully take

Pursuing a Socialist Market Economy in the Reform Instead of a Capitalist One

A Brief Discussion of the “Marketization Reform”—in what direction china’s reform must and mustn’t head

“Marketization Reform” shouldn’t be the full Name of China’s Reform—An interview with Liu Guoguang, a distinguished Chinese economist

The Right Direction of China’s Reform and Opening-up—China’s market-oriented reform aiming to achieve the self-improvement of socialism

Characteristics of China’s Socialist Market Economy—marking the 20th anniversary of the target for China’s economic restructuring

Part IV Socialist Market Economy does Have Planning

Planning and Public Ownership as the Mainstay of the Economy—the two fundamental characteristics setting socialist market economy apart from capitalist market economy

Planning: Socialist Market Economy’s Forte

Macroeconomic Regulation by Planning to Keep up with the Process of Marketization

On Strengthening the Guiding Role of State Planning before the Formulation of Twelfth Five-Year Plan

Planning and Market: both Required in the Circulation Industry

Part V The Basic Economic System in the Primary Stage of Socialism—the foundation of Socialist Market Economy

Consolidation of the Basic Economic System in the Primary Stage of Socialism—the foundation of socialist market economy

Reflection on Several Issues Concerning the Basic Economic System in the Primary Stage of Socialism

Reflections on Several Issues Concerning the Relations between Distribution and Ownership

Part VI The Goal of Socialist Market Economy—to pay attention to both equity and efficiency with more emphasis on social equity so as to achieve common prosperity

A Transition to “Paying Attention to Both Efficiency and Equity”

Attaching Further Importance to Social Equity

Applying the Principle of “Giving Priority to Efficiency” to Wherever it is Rightfully Needed

To Divide a Cake Equitably: Harder to Achieve than to Bake a Large One

Thoughts on National Prosperity, Prosperity of the People, and Common Prosperity

Income Distribution in the New Era of China’s Reform and Opening-up

To Gradually Abandon the Policy of “Giving Priority to Efficiency with due Consideration to Equity” and Place a Greater Emphasis on Social Equity


On the Relations between Planning and Market in Socialist Economy

A Further Study on the Relations between Planning and Market

Macroeconomic Regulation and Economic Equilibrium through Planning

Several Thoughts on Planning and Market

Q & A Concerning the Market-Oriented Reform—An Interview of Liu Guoguang by Southwest Materials Business Newspaper

A Marxist Philosophical Approach to Sum up China’s Reform and Openingup

An Overall Perspective on the History of PRC over the Past Six Decades—the first half and the second half

On Several Issues Concerning Socialist Political Economics


About the Author

Liu Guoguang was born in November 1923. He is a specially invited consultant of the Chinese Academy of Social Sciences (CASS) and a member of the academic department of the CASS. His academic expertise is economics. He once served as vice president of the CASS, director of the Institute of economic research, editor in chief of economic research, deputy director of the National Bureau of statistics, etc. He is also a professor in Peking University, Nanjing University, Northeast University of Finance and economics, Shanghai University of Finance and economics.

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