On October 23, 1985, Deng Xiaoping met a delegation of American senior entrepreneurs organized by Time Inc.

"There is no fundamental contradiction between socialism and the market economy. The problem is how to develop productive forces more effectively. We used to have a planned economy, but our experience over the years has proved that having a totally planned economy hampers the development of productive forces to a certain extent. If we combine a planned economy with a market economy, we shall be in a better position to liberate our productive forces and speed up economic growth,” Deng Xiaoping told his American guests.

He added that negative phenomena that appeared in the process of reform could be primarily solved through proper education and laws.

(China.org.cn October 23, 2007)