SHANGHAI, Aug. 12 (Xinhuanet) --
Although the United States and the European Union continue to deny that
China has established a market economy, a number of other nations,
including New Zealand, Singapore, Malaysia and Thailand, have agreed that
China has.
When most Chinese
were fearful even to mention the term "market economy," the late leader
Deng Xiaoping vigorously preached its adoption during his historic 1992
inspection tour to south China. Deng's bold remarks brushed aside
ignorance and deep-rooted prejudice over market economies, which socialist
Chinese used to call "capitalist rubbish."
What Deng clarified on the market
economy issue made him an unrivaled economic pioneer in China. He said in
his most frequently quoted words that "Practice of a planned economy is
notequivalent to socialism because there is planning under capitalism too;
Practice of a market economy is not equivalent to capitalism because there
are markets under socialism too."
Experts believe Deng's simple but
penetrating paradox opened China's access to a market
economy.
In 1993, the year after Deng made his
historic remarks, more than 40 well-known Chinese economics scholars
published the book "Chinese Leading Economists on Reform." In it, the
economists discuss the feasibility and legality of the market economy that
would come into being in a socialist country.
It seemed that academic thinkers were
following in the statesman's steps.
Deng originally surprised the world
with his "non-socialist" opinions in 1979, when China kicked off the
landmark government reform and opening up drive. In a meeting with
visiting foreign guests, Deng amazed them by unexpectedly asking "Why
can't a socialist country have a market economy?" Later China created its
four Special Economic Zones where a fledgling market economy beganto take
shape.
"Deng Xiaoping is known as the 'chief
architect' for China's reform and opening up policies," said Ding Chun, an
economics professor at Shanghai-based Fudan University. "China didn't
clearly articulate that the goal of economic reform was to establish a
socialist market economy until 1992 when Deng Xiaopingmade his south China
tour and gave speeches on the market economy."
Deng's foresight and determination
encouraged him to push through implementation and improvement of
Chinese-style market economy, which maintained many "Chinese
characteristics" that fit China's actuality, according to
Ding.
China's market economy has been
successful and prosperous, though negotiations over the market economy
status will continue and bargaining between China and its US and EU
partners will remain hard.
Over the past decade, China's gross
domestic product grew by more than 8 percent per year, and its foreign
currency reserve exceeds 400 billion US dollars. Most economists agree
that it is simply a matter of time until China's full market economy
status is recognized by major economic powers. Some Chinese see US and EU
reluctance to grant China full market economy status might result from the
desire to hold the upper hand in negotiations overother issues, such as
pressuring China to open its doors wider andfaster in some industries.
