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Economy
Before the reform and opening, a unique economy of public property existed in China that lacked dynamics. As of 1978 when he put in practice the policy of reform and opening, while he persisted in the public property, the Chinese Government promoted the development of several economic elements. The economies of individual and deprived property have obtained a relatively fast development. By the end of 1999, China had registered 33.110.000 companies individual and deprived of industry and commerce with 78.240.000 people; 325,000 companies of Chinese-foreign joint investment, Chinese-foreign cooperative management, and exclusively external capital, with a total of external direct investment of 265,600 million of yuanes. Their development and fortification play a role important to facilitate the life of the town, to compensate the lack of bottoms, and to introduce the administrative technologies and experiences outposts. Meanwhile, the domination of the economy of public property fortarece still more. In 1999, the added value industrialist obtained by the companies of state property and the industrial companies of certain magnitude was of 24.7% of the Internal Gross Product. A new structure has formed essentially in that the public property is the main body and several economic elements are developed together.
In the economy previous to year 1978, the base of agriculture was weak and the proportion between the light industry and the heavy one lost balance. From 1978 a series of policies was put in practice, such as the preferred development of the light industry, the extension of the article import of consumption of high quality, the basic fortification of the industries and facilities, the development of the tertiary sector. These policies have impelled the rationalization of the Chinese economic structure so that it is optimized and more rises. The relation between diverse sectors of production of China has improved evidently. The proportion of the primary sector has lowered and the one of the sectors secondary and tertiary it has raised. Before, the sectors primary and secondary were main the forces to impel the increase of global value of the national economy, and now, the sectors secondary and tertiary are in charge of this mission. The increase of the secondary sector constitutes a main driving force to develop the Chinese economy quickly. When modifying the total structure of production, has undergone a relatively remarkable change in diverse sectors. In the global value of production of agriculture, forestry, the cattle ranch and the fishing ground, the proportion of agriculture has lowered and the one of forestry, the cattle ranch and the fishing ground have raised. In the industry, the structure of the industries light and heavy is happening gradually, of a composition of slight type that takes the “compensation from consumption” like the main thing, to a composition of heavy type that follows the “direction of the investments”. On the tertiary sector, the proportion of transport, traditional commerce and other branches has lowered, whereas real estate, finances and insurances, services of telecommunications are developed quickly.
III the Plenary Session of XI the Central Committee of the Communist Party of China celebrated in 1978 took a resolution strategic to transfer the center of gravity of the work to the socialist modernization and to apply to the policy of reform and opening. This initiated first in the countryside. There they were applied the system of responsibility by contract based on the family and with income based on the yield, under diverse forms, and the system of integration of the levels collective and individual; the unified and assigned acquisitions of agricultural products and secondary occupations were suppressed little by little releasing the majority of the prices of those products; the structure of the production was readjusted; diverse activities were fomented and the companies of corner and town. All these measures stimulated with great energy the enthusiasm of the farmers in the production. III the Plenary Session of XII the Central Committee of the Communist Party of China, celebrated in 1984, approved the “Resolution about the reform of the economic structure” and the reform and opening happened from the field to the city. XIV the National Congress of the PCCh celebrated in 1992 established the directive position in China of the theory on the socialism with Chinese peculiarities raised by Deng Xiaoping, and determined that the reform of the economic structure of China looks for to build a structure of socialist market economy. Their main contents are: to deepen the reform in all the aspects and to adopt a series of measures of macroeconomic regulation and control, like the one to assure basic the economic system with the public property like main and the several economic elements developing set; after extending the management autonomy and applying the system of responsibility by the administration contracted, to still more transform the mechanism of management of the companies of state property and to establish a modern enterprise structure, accommodated to the demand of the market economy and characterized by clear rights of property, defined jurisdictions and responsibility, separation of the attributions and governmental responsibilities of enterprise and the scientific methods in the administration well; to found a national system of markets open and unified and to make reality integration between the markets urban and rural and the national market and the international, fomenting the optimized distribution of the resources; to change the functions of the government to administer the economy, to establish an improved system of macroeconomic regulation and control that it has like main indirect means; to establish a regime of distribution of the income, in which the principle of “a each according to its work” is the main thing, the effectiveness is the preferred thing and justice is the rule; to establish a system of social guarantee of manifold layers, being caused that the economy is developed heals quickly and. The National Congress of the PCCh was pleased in 1997 XV, in which it was indicated that the nonpublic sector is an important component of the socialist economy of China. One stimulates the capital, the technology and other elements of the production to participate in the distribution of the gain, causing that the reform of the economy is placed in a new height. In 1999, diverse reforms advanced and achieved remarkable successes. For example, concerted efforts became and obtained new successes in the reform of the system of the cereal circulation, the state companies and the system of finances. The reform on the house system and the one of the system of medical insurances have taken his first steps. To the reform of the investment system and the reform of the financial and tributary system are drawing up. The reform of the organisms subordinated to the Council of State marches tailwind and has produced excellent effects. At present, the socialist market economy in China is forming, the basic function of the market in the distribution of resources has been fortified evidently and the system of macroeconomic regulation and control has formed preliminarily; the modality of growth of the Chinese economy is transformed of the extensive type into the intensive one. For 2010, China will have constructed a structure of relatively perfect socialist market economy it will turn and it into a relatively mature one before 2020. As of 1978, as one went breaking the system of planned economy and the reform of the Chinese economy was deepened gradually, they appeared one after another financial markets of merchandize, markets, and labor markets of technology and services. China has happened of the system of planned and concentrated economy to the one of preliminary socialist market economy. The paper of regulation of the market has been reinforced on the economy.
In order to reinforce the paper of regulation of the market, the State has step by step reduced the types of merchandize produced according to the state plan, has eliminated the prohibition of commercial activities of the production companies, has annulled the prices of the merchandize determined by the State, it has extended the autonomy of management of the companies with respect to the production plans, and buys and sale of its products, has founded commercial markets wholesale and centers, it has reformed the commercial system of the sales retail and wholesale, and has authorized to the nonstate economies to dedicate itself to the commercial activities. By means of the reform, there is broken step by step the market of merchandize monopolized by the economy of state property. A diversified commercial structure is already formed, that it has as main body the state commerce, with the parallel existence of several economic elements. On production means markets, before 1978, China controlled the provided production and commercialization of 791 of production means merchandize, and now, with the exception of five assortments, others have entered the market. , Supermarkets and special, full stores of merchandize like foods, dresses and articles of daily use are in the diverse urban and rural places department store. In 1999 there were in all the country 1,800 enterprise chains, more than 2,000 article markets of second hand of different types, more than 1,000 societies of financial renting and more than 1,000 companies of auctions. The electronic commerce was developed quickly; the system of agencies was applied in all the social sectors; the distribution and the distribution of materials underwent great changes and the modern companies of this sector replaced to the companies of traditional storage and transport. The value of purchase and sale of merchandize comes increasing. In 1999, the global volume of the sales retail in the field reached 1.204.300 million of yuanes, an increase of 11.4 times on year 1978; in the city, the mentioned global volume was of 1.909.200 million of yuanes, with an increase of 37.8 times in comparison with 1978. Meanwhile the market of merchandize tends to be of purchase. The majority of the merchandize maintains the balance between the supply and the demand, but the supply of some articles surpasses the demand. The level of the prices of market stays stable. The direction of the market for the producers has been reinforced.
Before 1978 when it began the reform and opening, the State fixed the prices of the absolute majority of the merchandize of the Chinese market. After the reform and opening, with the extension of the market of merchandize and the change of relation between supply and demand, the State realized of planned and methodical way a reform of the prices. They governed three types of prices: the fixed ones by the State, oriented by the State and the regulated ones by the market. This last group extended itself constantly. In 1999, the prices of more were freed of the 95 percent of consumption articles and more of the 80 percent of capital assets and the supply and demand of the market were commercialized to prices regulated by. The mechanism of prices of the socialist market is forming. As far as the system of the prices, those of basic products were relatively low. Concerted efforts have been made to solve the problem and now the structure of the prices is being rationalized. In comparison with 1978, in 1998, the difference of prices between agricultural and industrial products was reduced; in 1998 the prices of purchase of agricultural products were increased 5.83 times; the prices of factory of industrial products lowered 4.1%, and the coefficient between the integral price of industrial products and the one of agricultural products was of the 59.7 percent. According to the demand of the socialist market economy, the mechanism of prices has settled down on the base of macroeconomic regulation and control of the State and with the formation of prices by the market like the main thing. Thanks to the policy of reform and opening, perfecting the market of credits, to the market of action and the state treasury bond market have been developed, so that the market of the capital is fortified gradually. In the beginning of the decade of 1980, the reform of market of credits happened of the original policy of “unified planning, administration of diverse levels, integration between deposits and loans, and contract in balance” to the proportional administration of risks, expanding the dimension of loans. In order to materialize this important change, besides the interest rates, new measures like représtamos, rediscounting, preparatory bottom of deposit, and abierto handling of the market were adopted, fortifying and standardizing the administration, regulation and control on the market of credits. Thus the action market arose from the anything and it is developed step by step becoming a stock market of enormous dimension, whose symbol is the stock markets of Shanghai and Shenzhen.
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