1, this system was gradually formed through the practice of reform, opening up and socialist modernization under the leadership of China * * * production party. We will not only adhere to the basic economic system in which public ownership is the mainstay and various ownership economies develop together, but also give full play to the decisive role of the market in resource allocation, better play the role of the government, and promote sustained and healthy economic and social development.

2. Specifically, the socialist market economy is a market economy integrated with the basic socialist social system, which embodies the fundamental nature of socialism. It is an economic system that makes the market play a decisive role in resource allocation under the macro-control of socialist countries. Economic activities follow the requirements of the law of value and adapt to the changes in supply and demand.

3. Allocate resources to the most effective link through price leverage and competition mechanism, so that enterprises can survive the fittest; The sensitivity of the market to various economic signals promotes the timely coordination of production and demand. In addition, the socialist market economy refers to the system that plays a decisive role in the allocation of social resources through market supply and demand, price and competition.

The relevant knowledge of socialism is as follows:

1. Socialism is a sociological thought, which advocates taking the whole society as a whole, including products, capital, land and assets. It should be owned and controlled by society, and its management and distribution should be based on public interests. This thought can be traced back to the beginning of16th century, and advocated the conflict between socialized mass production and capitalist private ownership. The core concepts of socialism are public ownership and fair distribution.

2. Public ownership means that the means of production are owned by all the people, eliminating the exploiting classes in society and enabling everyone to participate in production activities on an equal footing. Fair distribution emphasizes the distribution of social wealth according to everyone's labor input to ensure social justice and fairness. The development of socialism has gone through several stages.

3. Irving, Fourier and other early utopian socialists put forward an ideal socialist social model, but their theories have not been applied in practice. It was not until Marx and Engels put forward the theory of scientific socialism that socialism really began to be practiced in all countries. 1949 since the founding of new China, China has always adhered to the socialist road.