What system does our economy adopt?

The resource allocation of planned economy is realized by government administrative means, that is, orders, instructions and decrees. It is in this sense that planned economy is also called "command economy".

The main advantage of the planned economy system is that it can mobilize and concentrate scarce resources to serve some clear national goals, so as to meet the urgent and overwhelming needs of the country, such as national industrialization, post-war economic reconstruction and wartime economy, and make the resource allocation of the whole country conform to specific national goals.

2. Market economy system

The market economy system is an economic system that relies on market means to allocate resources.

The main advantage of the market economy system is that it provides people with equal opportunities for competition, promotes technological progress and institutional innovation, and improves the efficiency of resource utilization.

3. China's characteristic economic system

Based on the advantages and disadvantages of the above two systems, in terms of resource allocation, China does not adopt a simple market economy system or a simple planned economy system, but both. This system is conducive to the development of China's productive forces and the rapid development of China's social economy.