The Engendering of a Market Economy in China

Abstract

This paper explores the facilitation of market forces in the transformation of Chinese society. Since 1978, economic openness has become China’s macro-policy trajectory. In principle, market-oriented policy has been used as the linchpin of growth, as market behavior gives rise to opportunities for access, the enlargement of goals through production and consumption, and a manifest orientation that envisions change. Consequently, the statement “the state practices a socialist market economy” was added to China’s constitution at the First Session of the Eighth National People’s Congress on March 29, 1993.\nThis paper is divided into three sections. First, a brief illustration of market economy theories will be provided. Second, a framework will be put forward in order to understand the phenomenal changes of China’s attitudes in four aspects as it moves toward a market economy. Third, some implications of China’s movement toward a market economy will be discussed.