Reform of System: A Comparison between Social Market Economy and Socialist Market Economy

From theory,background,development environment,and social system,this paper compares German's social market economy with China's current socialist market economy,and concludes that there are differences between German's social market economy and China's established socialist market economy to a great extent,and this great diversity determines that China can not take social market economy directly or in large quantities.In China,market economy system is closely related to socialist basic economic system,in addition,the aim to reform is not abandon socialism system but overcome the shortcomings of traditional planned economy through continuous system innovation and impart new life to socialist basic system.