In the China model, the essence of the relationship between market and government is the socialist market economy controlled by the government. Based on the nature of socialism,China takes its basic economic system,in which public ownership is the mainstay with diverse ownership developing together,as the foundation in dealing with the relationship between the market and the government. In the economic operation, China insists on the government-dominated market economic system, that is, the government determines the direction of the economic operation through controlling the investment direction and scale,plans and coordinates the economic operation structure through strengthening supply management, and overcomes the market insufficiencies through macro and micro regulations. In income distribution，China sticks to the combination of primary distribution by the market and redistribution by the government,taking into consideration both equity and efficiency. In foreign economic relations, China sticks to the combination of market regulation and government regulation to establish a multidimensional open system of self-reliance.

Editor: Zhong Yao

Studies on Marxism.2015.No.11.