Chinese Economy in Transition
Micro Changes & Macro Implications
By Chen Kang
Singapore University Press
$40.50 Paper Original
China started its economic reform and the open-door policy in 1979. By October 1992 when the 14th Congress of the Chinese Communist Party (CCP) formally endorsed the concept of "socialist market economy", the Chinese economy in terms of its structure and institutional condition had changed almost beyond recognition. The previously all-encompassing role of government had been greatly reduced, mandatory plans abolished, prices decontrolled, and administrative controls decentralised.
These changes unleashed the latent entrepreneurial energies of the chinese people and led to increases in productivity efficiency. Consequently, the Chinese economy experienced spectacular growth at near double-digit rates in the reform period from 1979 to 1993. In the same time period, the gross domestic product (GDP) in per capita term grew at 7.7 percent per annum while the population increased by more than 250 million, which is about the same size of the total population of the United States of America.
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