Drawing inspiration from Lenin's
New Economic Policy, Deng's theory encouraged the construction of socialism within China by having it develop
"Chinese characteristics", which was guided by China's economic reform policy with the goal of self-improvement and the development of a socialist system. His theory did not suggest improvement or development of China's closed economic system, but rather, overthrowing the existing economic system for a more open one. Deng saw domestic stability as an important factor in economic development - "In China, the overriding need is for stability. Without a stable environment, we can accomplish nothing and may even lose what we have gained". He added that "stability is the basic premise for reform and development. Without stability nothing can be achieved". During the
reform and opening up, Deng criticized those he deemed as the ideologues of the Cultural Revolution for seeking "poor socialism" and "poor communism" and believing that communism was a "spiritual thing". In 1979, Deng stated, "Socialism cannot endure if it remains poor. If we want to uphold Marxism and socialism in the international class struggle, we have to demonstrate that the Marxist system of thought is superior to all others, and that the socialist system is superior to capitalism". China largely owes its economic growth to Deng Xiaoping's emphasis on economic production, under the
theory of the productive forces – a subset of 20th century
Marxist theory. In the view of Deng, the task faced by the leadership of China was twofold: (i) promoting modernization of the Chinese economy, and (ii) preserving the ideological unity of the
Chinese Communist Party (CCP) and its control of the difficult reforms required by modernization. Deng believed that "only by constantly developing the productive forces can a country gradually become strong and prosperous, with a rising standard of living." Deng argued that due to the isolation of China in the international order of the time and an extremely underdeveloped economy, in order for China to achieve socialism and to bridge the gap between China and Western capitalism, China would have to borrow certain market elements and aspects of
capitalism into its economy. However, he also suggested that its usage would have to be state-controlled. These borrowed principles, in Deng's mind, allowed a more liberal interpretation of China's modernization into a socialist state. This includes marketing characteristics such as planning, production, and distribution that could be interpreted as socialism. Modernization efforts were generalized by the concept of the
Four Modernizations, set forth by
Zhou Enlai in 1963 and continued by
Hua Guofeng after 1976, to improve agriculture, industry, national defense, and science and technology in China. Dengists still believe that public ownership of land, banks, raw materials, and strategic central industries is necessary so that a democratically elected government can allocate them for the benefit of the country as a whole; but at the same time, private ownership is allowed and encouraged in industries of finished goods and services. According to the Dengist theory, private owners in those industries are not a
bourgeoisie, because in accordance with Marxist theory, the bourgeois owns land and raw materials. In Dengist theory, private company owners are called civil run enterprises. To preserve ideological unity, Deng Xiaoping Theory formulated "
Four Cardinal Principles" which the CCP must uphold: • the "basic spirit of communism"; • the political system of the PRC, known as the
people's democratic dictatorship; • the leadership of the Communist Party, and; •
Marxism–Leninism and
Mao Zedong Thought. In 1992, fourteen years after Deng had become China's leader, he embarked on a tour of southern China. It was during this trip that Deng Xiaoping uttered the phrase "open up" ( ), which would be the foundation for China's economic development up until the present day. Dengists also take a very strong position against any form of personality cult which appeared in the
Soviet Union during Stalin's rule,
Cuba, and
North Korea.
14th National Congress report In 1992, the Jiang Zemin presented a report at the 14th CCP National Congress summarizing the main contents of Deng Xiaoping Theory into nine points. • Allowing China to follow its own path to socialism • Concluding that China is still in the
primary stage of socialism • That the goal of socialism is to liberate and develop productive forces, eliminate exploitation, and ultimately achieve common prosperity. So, developing the productive forces is the main priority. • That reform should also be considered a revolution, and will lead to China's modernization, and that the goal of economic reform is to establish a socialist market economy system while upholding public ownership and distribution according to work. • That peace and development internationally was needed for China's modernization, and that opening up to the world is necessary to achieve this. • That China must adhere to the socialist road, maintain "the people's democratic dictatorship, uphold the leadership of the Communist Party of China, and adhere to Marxism-Leninism-Mao Zedong Thought." • The proposal that modernization be achieved in three steps, with opportunities seized to provide relatively rapid development and high efficiency. Stating that
poverty is not socialism, and that universal prosperity is not possible, it was determined that it was necessary to allow some regions people to become rich before others, which would then lead to China gradually achieving
common prosperity. • A reiteration that the Chinese Communist Party is the
vanguard of the working class, and the central leadership in the socialist cause. Additionally declaring that the party must adapt to reform, opening up to the world, and modernization. • Determining that with regards to national reunification, the policy of "
one country, two systems" should be adopted, allowing the returned territories to maintain their systems of capitalism. The report also highlighted the insistence in Deng Xiaoping Theory on upholding the Four Cardinal Principles to ensure the country does not peacefully evolve into capitalism and opposes bourgeois liberalization and its ideology. == Relation to Maoism ==