ABSTRACT

Since the Reform and Opening Up, Chinese economy has attained the constant rapid growth with an average annual rate of approximately 10" and created a miracle of development. China has attained great achievements in industrialization, urbanization and modernization in over 60 years since foundation of New China, particularly in over 30 years since the Reform and Opening Up. The vast land, rich resources, regional variance and complete economic system in China give rise to the unique advantage of Chinese economy on space development. With private ownership as its basis, the capitalist market economy necessarily gives rise to profound conflicts and defects such as class antagonism, economic crisis and polarization. The socialist market economy is built on the foundation of keeping public ownership as the mainstay of the economy and allowing diverse forms of ownership to develop side by side. The optimization of the economic structure is the necessary result when economic development in China reaches a certain degree.