Economic Reform in China: The Ensuing Phase

Abstract

If economic liberalization in China was the only constituent of reforms, the challenges that currently confront the nation would have been much fewer. China’s precedent economic experience, a subject that has been discussed in the last few chapters, demonstrates that inducting China onto a path that would take it towards liberalism was not simply a matter of easing curbs on investment and trade. It also entailed a wide gamut of steps that included decentralization, marketization and ownership diversification. In the absence of a broader understanding of the underpinnings and measures that would be required for an effective strategy of economic liberalization, it is improbable that China would have a macroeconomic environment that has enabled it to emerge as a leading foreign investor destination.