Xi Jinping's Governance of China vol. 4
"Key Issues in the New Development Stage" from December 8, 2021
Speaking about the potential development of the socialist market economy model through capital:
"Karl Marx and Frederick Engels did not envisage the possibility of a market economy under socialism. Thus they could not anticipate how socialist countries should treat capital. Though Vladimir Lenin and Joseph Stalin led socialist development in the Soviet Union under a highly centralized planned economy they did not encounter significant problems caused by capital.
Creating the socialist market economy has been one of our Party's greatest achievements... Although capital in a socialist economy is inherently different in many respects from that in a capitalist economy, they both have a tendency to pursue profit...
We need to explore how to boost the positive contribution of capital in the socialist market economy while keeping its negative effects under control... We must not allow financial magnates to act unscrupulously. Meanwhile, we should ensure that capital functions properly as a production factor."
Moreover, Xi Jinping spoke at the 19th National Congress of the Communist Party of China (CPC) on October 18, 2017.
The speech, titled "Secure a Decisive Victory in Building a Socialist Society with Chinese Characteristics in the New Era", highlighted the basis of the socialist market economy:
"Step by step we established the basic socialist economic system and introduced the socialist market economy in which various forms of ownership develop together with public ownership playing the dominant role and multiple forms of distribution coexist, observing 'to each according to their work' as the principal form..."
The next evolution of the socialist market economy model is under development. This evolution seems to be centered around capital flow and is expected to unlock a new economic path for the CPC. The perfect balance between capital control and free capital circulation is the key for the next step forward.
