Economic reform and opening up to the outside world have made profound changes to the economic and social development of China. The most dramatic changes are in two areas. One is the change in the economic system. China has transformed its economic system from a highly centralized, planned economy to a market economy. Though people hold different views on whether or not China has set up a complete market economic system, the transformation has been profound and irreversible. Moreover, it has been necessary to speed up the reform process, especially since China’s entry into the World Trade Organisation (WTO). The other change has been in the ownership structure of enterprises.