On the theoretical source of the reform of socialist open economy with Chinese characteristics

Abstract

Purpose – Some economic theories have influenced the reform of the socialist open economy with Chinese characteristics. As a new practice of socialism, an open economy is not only driven by China’s productivity level and people’s living standards but also regulated by the law of commodity production and value. Design/methodology/approach – It was popular to participate in economic globalization for most countries in the second half of the 20th century, but not all of them could benefit from it. Findings – The key to the success of the open-economy reform with Chinese characteristics lies in learning from and innovating the comparative advantage theory, thus forming an organic whole of the open economy, including the core of correctly handling the relationship between the government and the market, the method of gradual reform, the breakthrough point of transforming the mode of economic development, and serving people all the time. Originality/value – Achieving internal and external coordination through the combination of opening-up and independence is a critical principle of China’s economic opening-up, which not only effectively safeguards national interests but also actively promotes the construction of a new global order.

Keywords

• Socialist market economy with Chinese characteristics
• Open economy
• World system
• The law of value
• Comparative advantage