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The Creation of a Functioning Market-Based Economic System in China
Topic: The creation of a functioning market-based economic system in China is difficult, if not impossible, given current legal arrangements, Critically assess whether, or to what extent, this statement is correct.
Since the reform undergone in 1978, China has experienced many changes in its legal arrangements for the socialist market development. The ultimate aim of the reform is to improve the living standards in China.
Before the reform, China was adopting the planned economy for political reasons. The planned economy did not bring China a wealthy and healthy economy. As a result, a scaled economic reform has been started. Since the reform, the living standard in China has been improved a lot. Therefore, China has the incentive to further conduct the transition from the planned economy to a socialist market economy. In this study, the socialist market economy being similar with a functioning market-based economic system would be discussed later. The impediment of the creation of a functioning market-based economic system by the current legal arrangements would also be critically assessed in the later context.
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