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Restructuring toward the Socialist Market Economy For quite some time in the past, China had a structure of highly-centralized planned economy. With deepening restructuring toward the socialist market economy and progress in the development of democratic politics, there was gradual lifting of the former improper restrictions visible and invisible, on people’s freedom in choice of occupation, mobility, enterprise, investment, information, travel, faith and life styles. This has brought extensive and profound changes never seen before in China’s history.
On the one hand, the enthusiasm of the work force in both city and countryside has been set free. In particular, hundreds of millions of farmers are now able to leave their old villages and move into towns and cities, especially in the coastal areas. Tens of millions of intellectuals are now able to bring their talent and creativity into full play. On the other hand, the massive assets owned by the state can now be revitalized, the private capital pool in the amount of trillions of Yuan can take shape, and more than 500 billion US dollars worth of overseas capital can flow in. This combination of capital and labor results in a drama of industrialization and urbanization of a size unprecedented in human history being staged on the 9.6 million square kilometers of land called China.
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