China on the Way to Modernization

- Perspectives from Chinese View

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Since the 8th National Congress of Communist Party of China (hereafter referred to as CPC) held in September 1956, on which the reform of the “economic management system” was decided, China’s economic reform has been going on for nearly half a century. At the beginning, the so-called “reform of the economic management system” was only limited to some policy adjustments so as to improve the economic situation and vitalize the economy, but there was not a certain fixed goal. But the reform with market orientation has been becoming more and more clear-cut until mid 1980s. In the reform lasting for 50 years, China has been taking various measures to reform the original economic system. (1) 1958-1978, Administrative Decentralization: this period was featured by the central government distributing its power and benefits to the government at different levels. (2) 1979-1992: Incremental Reform: also entitled “priority of reform for outside system sectors”, the reform was carried out mainly in non state-owned sectors or those sectors outside the plan so as to facilitate their development. (3) 1993-2002, a strategy was adopted that the reform shall be advanced integrally and there should be breakthroughs in key sectors. This reform intended to initially establish socialist market economy. (4) After 2003: a scientific development view has been put forward, and the reform has been carried out in economy, society and politics so as to improve the socialist market economic system.