ABSTRACT
The socialist economy, as it was introduced in China in the early 1950s and continued to exist for over 30 years, differs radically from liberal market economies. The state controlled the economy by enforcing a state plan. It also monopolized the distribution of all goods and commodities. Instead of attempting a formalistic definition of a socialist economy here, we want to outline the moral justifications and ideological origins of the economic formation in China, and describe how it was brought into reality by the Chinese Communist Party.
