ABSTRACT
In the process of socialist modernization, the Chinese economy is undergoing a far-reaching and thoroughgoing transformation. Parallel with the transformation of the economy, economic theories, which guide Chinese economic activities, are in the midst of a great transformation. This chapter deals with three essential aspects of the transformation. The first aspect of the great transformation is a change in ownership of the means of production. The second aspect of the great transformation is the reform of the management of the economic system. The third aspect of the transformation is the restructuring of the economy. In the process of "transforming the ownership while people are in poverty," some rural collectives, afraid to share their properties with others, massively slaughtered hogs and poultry, felled orchards, and dissipated their accumulation. The fact is that any system of ownership that is compatible with a certain state of economic development and can promote growth of the production forces has its superiority and should be retained.
