Advances in Management and Applied Economics

The Development of Market Economy in China

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  • Abstract

    The market economy contrasts sharply with the commodity economy that existed in China 2000 years ago. Its external forms and underlying meaning are mutually incompatible with traditional Chinese culture. In the world’s recent history, market economy has strongly supported the development of the industrial countries and has created an amount of wealth within a short span of 200 years, which far exceeds the total wealth created by feudal societies over the course of thousands of years. By implementing a market economic system within the framework of socialism, China’s strength is continuously increasing and the standard of living is constantly improving. Now, China has become the second largest economic entity in the world. However, the pan-marketization argument confounds right and wrong and advocates so-called economic theories that are unsuitable to China’s basic conditions. Not only does it disrupt the rational development order of China’s economy and society, but it also harms the basic interests of a majority of the people. The developmental history of market economy shows that pan-marketization is not suitable to China’s society.