ABSTRACT
In the previous chapters, we have given a preliminary presentation on the current economic environment in China. We have seen that the economic reforms in China have made the Chinese economy shift from the traditional planned economy to an economy with the market as its primary mechanism of resource allocation. In terms of ownership, a variety of forms coexists in China. In terms of economic development level, China remains as a developing country. In official documents, the contemporary Chinese economy is defined as a socialist market economy with Chinese characteristics. It should be noted that the status of market economy in China has not been widely recognized in the international community.1 This throws many obstacles in the way of China’s full integration into the international community. An interesting question, then, is how is the economic operation of the contemporary Chinese economy different from a typical market economy as in developed countries? In other words, does the economic operation of the Chinese economy obey the rules and features of a typical market economy as in Western countries? In this chapter, we examine this problem from the perspective of macroeconomic data.
