The Political Implications of the CCP`s "Socialist Market Economy" Proposal

Abstract

The creation of a socialist market economy involves a theoretical and ideological struggle within the Chinese Communist Party (CCP), and will only be possible after the Party has cast off its ``leftist`` shackles. Despite efforts by Teng Hsiao-p`ing (Deng Xiaoping) to build a consensus, the CCP is still hampered by its old ideological bonds. Another problem that has yet to be solved is how to resist Western influence, which is likely to grow during the course of economic reform. One guarantee of political stability is perceived to be Teng`s theory of ``socialism with Chinese characteristics,`` and the leadership is working hard to promote it. The shift from a planned to a socialist market economy will have important implications for the Party, the legal system, the bureaucracy, central-local relations, the military, and mainland China`s links with the world economy. Political stability is the key to the success of the new economic policy, and this depends on the ability of the Chiang Tse-min (Jiang Zemin) leadership to consolidate its position, on the degree of central-local conflict, and the regime`s ability to quell rural unrest and eliminate corruption. Shaking off the bondage of an outworn ideology is the key to successful reform in mainland China, and there is still much to be done in this respect. But an ideological revolution is under way which will sooner or later result in the demise of socialism.