ABSTRACT
Economic policy is undoubtedly the major area of governance in the People’s Republic of China that has undergone the most drastic reform over the last three decades. Since late 1978 China has embraced economic reform and has started to change Mao’s economic policy. Within this time frame China has been transformed from a backward, autarchic and command economy into the world’s second largest open market economy. Meanwhile, China has bidden farewell to a society where the majority of the population lived in or barely out of poverty and has entered a stage of development where the population on average enjoys a middle-level income by world standards.
