Market Development in Chinese Economic Reform

Abstract

China is a socialist developing country. As a socialist country, China is faced with the task of reforming the traditional socialist economic system; as a developing country, she is confronted with the task of economic development (including the development of the political system, culture, science and technology, and social structures). These two task are interrelated. The past decade has witnessed important achievements in China’s economic systems reform, but complex problems remain to be solved. This paper reflects on some of these problems in China’s economic reform in which a developing socialist country is in a period of transition from a product economy which rejects the market mechanism to a commodity (or market) economy.