ABSTRACT
The Communist Party of China officially confirmed on the goal of reform as the socialist market economic system in 1992, since when the socialism with Chinese characteristics stepped into a brand-new phase. After the establishment of the socialist system, it is a major theoretical and practical problem to choose the economic system. Chinese economic reform has acquired remarkable achievements. The most fundamental experience from the success lies in construction and improvement of the socialist economic system with Chinese characteristics. The socialist market economy is integrated with the basic socialist system. The commodity economy has been existing for thousands of years, but had been only subject to small scale and scope before capitalism and was merely small commodity production or simple commodity economy. In terms of development goal, the socialist market economy follows the goal of realization of all-around development of people and achievement of prosperity for all social members.
