E. P. PIVOVAROVA Doctor of Economics Market transformation Keywords: theory of socialism with Chinese characteristics, correlation of theory and practice, "three-step" modernization strategy, social justice In the last two decades of the 20th century, the economic science of the People's Republic of China has been actively rethinking the entire body of knowledge about the laws of social production and distribution of material goods at various stages of human society development. The result of this reinvention was a market transformation, during which China made a decisive departure from the traditional norms of the socialist economic system based on public ownership of the means of production. In the interests of developing the productive forces and improving people's lives on this basis, not only individual but also private farms were allowed, and distribution of both labor and capital was introduced. Instead of the previous planned production, a market economy regulated at the macro level was being formed. Over the years of reforms, China has created a "mixed economy", which is called" socialism with Chinese characteristics", because this economy does not fit into either classical or" NEP socialism", but the idea of"social control over production" is present in it as a necessary component. "TWO HISTORICAL LEAPS" According to party documents and Chinese scholars, since its formation in 1949, the PRC has followed the path of "combining Marxism-Leninism with the real reality of China", during which "two historical leaps" took place, which became "two important theoretical achievements" in the country. The first achievement includes the theoretical principles and results of the experience of the Chinese revolution and its subsequent construction, associated with the name of Mao Zedong. To the second - the" theory of building socialism with Chinese characteristics", the main creator of which is considered Deng Xiaoping. All this together is called "the fruits of the pr ... Read more