Establishing market economy under socialism is one of our Partys pioneering moves. To build socialist market economy system led by the Party has generally gone through four stages: foundation and foreshadowing, exploration and initiation, establishment and development, deepening and perfection. Theoretical cognition and breakthroughs in different stages are different in its own way. At the very beginning, both plan and market referred to the ways of resources allocation; currently, the market has played a decisive role in resources allocation and given a better play of government, which embodies our Party’s constantly deepening cognition on the regularity of socialist market economy. The fundamental experience of building socialist market economy system led by our Party can be summarized as: 1. Insist on the Party’s strategic planning and unified leadership on economic work; 2. Promote emancipating minds, guide practice based on the developing Marxism; 3. Insist on “make a stand at every step”, implement incremental reform; 4. Excel in breakthrough at key points, strategically resolve major structural contradictions; 5. Concentrate on incentive constraint, promote rational and orderly competition between local governments; 6. Center on people, adhere to the path of common prosperity.