CHINA’S ECONOMIC REFORMS DURING 1993-2013

<p><em>The socialist market economy is the economical system used by the People’s Republic of China.</em></p> <p><em>This type of economy is based on the prevalence of the state system, which permanently interacts with an open market economy. The rationale behind the initiation of such an economical system is the fact that China economy was in an early stage of capitalism, and the principles of capitalist development would have been able to bring prosperity, according to Deng Xiaoping opinion. He wanted to insert market inside the planned economy, and he finally managed to succeed by creating the concept of "State capitalism". In this paper I will highlight the main reforms of the Chinese economical system, during 1993-2003, outlining the way followed by China from a controlled economy to a market one.</em>