|Introduction of Marketization of China's Economy
Through over 20 years of efforts, China's achievements in market-oriented economic reforms have attracted worldwide attention. 1999 is both the 4th year of the Ninth 5-Year Plan and the beginning of making the Tenth 5-Year Plan.
The marketization of China’s labor is estimated to reach 45% by the end of the Ninth 5-Year Plan, reach 65% by the end of the Tenth 5-Year Plan, and from mid-transition to late-transition
The marketization of China’s capital is 45% by end of the Ninth 5-Year Plan, and 60% by end of the Tenth 5-Year Plan, from mid-transition to late-transition.
The degree of marketization of production will reach 60% by end of the Ninth 5-Year Plan, 75% by end of the Tenth 5-Year Plan, and thereby turn from late transition to a relatively mature market economy.
The marketization of China’s prices may reach 65% by end of the Ninth 5-Year Plan and 75% by end of the Tenth 5-Year Plan, approaching a mature market economy.
The general degree of marketization of China's economy cannot be over 50% when summing up the previous analysis of the marketization degree of labor, capital, production, and prices, and taking into consideration the huge government interference on economic activities in China:
Concerning the first question, since it is publicly recognized that developed countries have mature market economies, their degree of marketization can be confirmed to surpass 80%.
Concerning the second question, the author believes that before the reform and opening up, i.e., before 1978, China's marketization degree could not have exceeded 15% and was a non-market economy. This is because before reform and opening up, labor basically did not move and was not a commodity.
Concerning the third question, one should confirm that China's current marketization degree is still low and must be raised.
International scholars in general believe that China is still a country in transition and should not be considered a market economy, but maybe it can be considered a semi-market economy.