China transformed from a command to market economy from "summary" of Comparative Economic Systems by Richard L. Carson
China's transition from a command to a market economy marks a significant shift in its economic structure. This transformation involved a series of reforms aimed at liberalizing the economy, reducing state intervention, and increasing market mechanisms. The shift towards a market economy was prompted by the recognition of the inefficiencies and shortcomings of the centrally planned system. One of the key reforms undertaken by China was the decentralization of economic decision-making. This involved granting greater autonomy to local governments and enterprises to make economic choices based on market forces. By allowing entities to respond to supply and demand dynamics, the economy became more flexible and responsive to changing conditions. Another important aspect of China's transition was the liberalization of prices. Price controls were gradually lifted, allowing ma...
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