ABSTRACT
Although there is no obvious model to follow, China should continue the "reform and opening-up" process that was started in the late 1970s. Although there is no obvious model to follow, China should, in my opinion, continue the "reform and opening-up" process that was started in the late 1970s. What can China do to get back on a reform track that is not only good for China, but also conducive to stable and positive relations with the rest of the world? Regarding policies and institutions, China needs to ensure that its economic and political systems are "in sync", or at least on a path toward convergence, which does not seem to be the case at present. Much can be done in the economic arena before political reform is onto the "critical path". China's current economic system is sometimes called "state capitalism". Uncertainty about its future economic system concerns mainly the degree of state control.
