Study On The Pattern Transformation Of Chinese Economic System

The transition of China's market economic system model originates from the rural area, and gradually recognized by the national system with the de-glamorization of ideological terrain. Good economic performance propels the successive launch of system reform in various fields of the economy. The reform gradually becomes the mainstream ideology of the society. The theoretical circle starts the extensive and long-term discussions on the relationship between planned and market economy, the goal, direction, path, scope and level of economic system reform, and finally proposed the target model of socialistic market economic system.The establishment of target model of socialistic market economic system marks the launch of systematic reform of China's economic system. China's economic system transformation is a process of transforming China's economic system under the framework of clear transformation goal, binding systems and open reform. To promote economic development and modernize the country has always been the guiding principle of the economic system transformation, and exploring the general way to integrate the socialist system and market economy is the theoretical subject of this transformation. The proposal of China's market economic system model transformation is associated with the order transition of socioeconomic system, good economic performance and stable social life, and it is the experience conclusion and theory summary of this economic transformation process.This paper first explained the transformation process of China from planned economic system to socialistic market economic system from the historical prospective, and found out that the system reform has been carried out stage by stage, and every step of the reform is a response to the practical problem. During the reform process, the central government has always been dominating the reform, timely adjusting the goal, changing strategies, and promoting the progress of reform in complexity and depth; during the reform process, the real-time economic performance, ideology incentive and competitive pressure from international market is the main force driving the system reform towards target model.After over 30 years'system reform, China's economic system reform has made extraordinary achievements by successfully discarding the ideal system in western countries and proceeding from the actual situation of the country. The aggregate economic volume of China is continuously magnifying, and China's economy is constantly integrating into the world economy. China's overall national strength is constantly enhanced, the government function is going through transformation, and the socialistic market economic system has been built basically. Meanwhile, the progressive reform and government-dominated economic development model has many disadvantages as well. The economic system reform is confronted with such problems as weakened power, slowdown of economic growth and increasing social conflicts, etc.The next few years is the key period for China's economic system reform to reach the target model of modern and matured market economic system. The central government shall rely on its own political authority, establish the development ideology centered on economic growth, vigorously promote reform in various fields with greater determination and courage, place greater emphasis on the top design and overall planning of the reform, define the priority and focus of the reform, enhance the pilot test for overall reform, further mobilize the enthusiasm of all sectors, respect the innovative spirit of the general public, vigorously promote the reform of economic system, steadily promote the reform of political system, accelerate the reform of cultural and social system, and make breakthroughs in important fields and crucial links.The first chapter introduced the theoretical origin and practical basis of Marxist planned economic system. The planned economic system adopted after the founding of new China is an inevitable choice in the domestic and international economic environment at that time. The planned economic system can ensure that the country can mobilize the economic resources of the whole society for large-scale investment and economic construction. However, the low efficiency in resource allocation and information problem during economic operation can cause the gap between supply and demand, lack of incentive mechanism for subjects of economic behaviors, insufficient motive force for innovation of enterprises and low economic efficiency. At the crucial historical moment for national economy, the rural area in China first launched the system reform centered on separation of ownership and managerial authority and achieved good economic performance. Driven by the economic interests, the reform gradually spread to cities, and opened the historical chapter of China's transformation from planned economic system to market economic system.The second chapter reflected on the whole process of establishing the market economic system model in China. The successful economic system reform in rural areas of China was echoed by the government, and cities launched the economic reform oriented at revitalizing the state-owned enterprises. The reform of state-owned enterprises went through the transformation from ensuring the leading role of the planned economy supplemented by market regulation, to establishing the socialist planned commodity economy, to establishing the economic mechanism with the government regulating the market and market guiding the enterprises, and finally to establishing the economic system combined with planned economy and market regulation, and formed the target model of socialistic market economic system. China's market economic system model is established based on relevant experience of the western developed countries. After comparing the characteristics of three major market economic system models of western countries concerning the relationship between the government and market, the paper proposed that, the target model of China's socialistic market economic system should involve developed market system, perfect operation mechanism, efficient microeconomic foundation, sound social security system, all-round participation in global competition, and economic ideology adapting to the market economy.The third chapter discussed the driving mechanism for China's transformation from planned economic system to market economic system. According to Marxism, the conflict between productivity and productive relations is the fundamental contradiction of the society, and the contradictory motion between productivity and productive relations promotes the development and progress of the society. Productivity is the fundamental power to impel the transformation of China's systems. The deepening of reform needs the support of majority. Therefore, the potential return of reform is the direct force to drive the deepening transformation of economic system model. As an informal system, ideology can reduce the transaction cost and stimulate economic growth. During system transformation, ideology can promote the mutual transformation between formal and informal systems. China's economic growth and achievements in system transformation have benefited from the ideology construction that concentrates on economic growth. The local governments have made continuous system innovations driven by this ideology, and thereby promoted the economic growth. The opening up has also effectively promoted the adjustment of domestic systems.The fourth chapter divided the transformation process of China's market economic system model into four stages, analyzed this process by the Theory of Institutional Change in Institutional Economics, and discovered three basic features of the transformation process of China's market economic system model. The first feature is target adjustment at different stages, from making full use of the law of value to increase production at the beginning of reform, to combining planned economy and market regulation together, optimizing the resource allocation by market, and improving the efficiency of economic operations, and finally to establishing socialistic market economic system, giving full play to the fundamental role of market in resource allocation under the macro control of the country. The second feature is progressive reform. China's reform is self-improvement and self-development of socialist system, making marginal adjustment based on the original system, gradually modifying the original system, and adding new meanings to socialist system. The third feature is that the government has dominated the whole reform process. Under the centralized political structure in China, the government has absolute political authority and great power in resource allocation, and can constrain other social behaviors at different levels by administrative, economic and legal means.The fifth chapter listed out the achievements that China has made in transforming its economic system model over the last three decades, and summarized the basic experience of China's reform, i.e. based on the national conditions, China has formulated the development strategy centered on economic construction, established the government-dominated market economic development model, followed the path of progressive reform, taken advantage of the mutual promotion and mutual complementation of reform and opening up, and adopted the balanced policy between fairness and efficiency. In addition, in view of the present economic situation in China, this chapter presented some existing problems in the perfecting process of China's market economic system model.The sixth chapter analyzed the causes of existing problems during the transformation process of China's market economic system model, and defined the main body of reform. Due to the diminishing institutional performance and involution tendency of systems, China should complete the transformation from planned economic system to modern market economic system as soon as possible, while the vested interest groups caused by progressive reform constitute enormous resistance to continuous reform. Faced with this reality, the central government should rely on its own political authority, adopt the development ideology centered on economic growth, give full play to the innovative systems of local government and market microeconomic subject, and accomplish the transformation to the target model of modern market economic system as soon as possible.The last part of the paper made a brief summarization, and pointed out the specific task of current reform.