ABSTRACT
Since 1956 the Chinese Communist Party has come to realize that in building socialism with Chinese characteristics, it must be clearly understood exactly which historical stage China is in at present. This chapter focuses on some of the strategic issues concerning reform and development that arise from that stage. China is a socialist country with a planned commodity economy. During the entire course of socialism, a commodity economy has to be developed, but in a way that is different in nature from a capitalist commodity economy in terms of ownership and "planning." The experience of many developed countries has shown that economic growth depends on the quality of the labor force and the high general level of education of its people. The evolution of socialism in its primary stage is a process of building a political system with a high level of democracy. A "scientific" culture refers to a general scientific system including political science, social sciences, and the humanities.
