Understanding of the nature of socialist China in different peoples must be based on the recognition that China is a socialist country; foreign scholars should not only examine the nature of socialism from the difference between Chinese characteristic socialism and capitalism, but interpret more the dynamic nature of socialism in terms of the historical and realistic basis of the socialism with Chinese characteristics. Foreign scholars are debating mainly on two cognitive areas of the nature of socialist China in different periods: first, whether the relationship between means and objectives reflects the innate nature of socialism; second, which of the productivity and the production relations factors is the core determining the nature of socialism. Since neither argument is comprehensive and persuasive, we propose they can surpass the past theories of the nature of socialism by exploring the ways to realize the essence of socialism in primary stages of socialism, by drawing upon the achievements of China's 40 years of reform and opening up and upon the innovative theories developed in the course of its influence on world socialism.