The Soviet New Economic Policy and China

The New Economic Policy (NEP, Russian новая экономическая политика, НЭП) was an economic policy of Soviet Russia proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, both subject to state control", while socialized state enterprises would operate on "a profit basis". The Chinese economic changes are compared and contrasted to the Soviet changes that originated in the USSR under Lenin. Both Communist societies struggled with making Marxism an economic foundation.