ABSTRACT

This chapter presents the reform of the management of China's economic system. The crux of the reform lies in choosing the proper model to build a socialist economy, and the current economic management system needs a thorough reorganization and readjustment. The necessity for overhauling the management of China's economic system stems from the fact that its existing productive forces are weak and underdeveloped. A comprehensive overhaul of the economic management system is an intricate and complex task. Chinese and foreign experiences suggest that reforms can be carried out step by step only when the conditions are ripe. China has abandoned its seclusion policy and is drawing on foreign experience as a reference in carrying out its own economic development. The salient features of the Chinese economy are its massive land, overgrown population, weak industrial foundation, low productivity, backward technology, imbalances among economic sectors, underdeveloped commodity production, and poor transportation and communication facilities.