The reason why China has gradually transformed from socialist planned economy towards socialist market economy with contemporary Chinese characteristics since the 1970s is that we still lack the understanding of the nature of productive forces. We haven’t fully fathomed its action,direction and effect,nor have we been clear as about how we could make effective social and planned adjustment of production. Therefore,we have to explore it in the same way as one crosses the river by feeling the stones. After more than 30 years exploration，both positive and negative experiences have shown that socialist market economy with Chinese characteristics should follow five principles:achieving the goal of socialist production，strengthening state-owned enterprises,distributing according to necessary time of social labor,full involvement of state-owned enterprises in competition,and the separation of government from enterprise management.

Editor: Zhong Yao

Studies on Marxism.2017.No.3.