Modern economic models of reforming of national economy of China

Abstract

China has the world's fastest-growing major economy but it has been a rocky road from socialism to consumerism. China provides us with a unique opportunity to explore the causal relationships among economic, institutional, political, and social forces and the model of reforming in an important transforming economy. In China’s economic transition important structural changes are occurring at the state and firm levels, and these changes have radical implications for the structure of economic and social life in China. Gradualism and stability were the foundations of the Chinese economic reform and continue to be so for the present leadership of the country. For the Chinese leaders economic reform has priority over political reform. They acknowledge that it would be impossible to accomplish anything in an environment of political unrest. The premature introduction of markets where there was neither a culture nor the institutions for dealing with them can have catastrophic effects. And from the results obtained, we can consider the Chinese as one of the most outstanding social transformations in human history, all this within a long period of stable and peaceful social environment, except for the Tinanmen Square demonstrations in June, 1989.