On Reforming China's Economic Management System

⦠China's economic system is made up of a wide range of component systems. They include, for instance, the planning system, financial system, labor system, materials system, commerce system, foreign trade system, etc. I was told that our friends in the industrial and commercial circles, especially those in Hong Kong, have shown particular concern for the reform of China's foreign trade system and other systems of external economic affairs. Our friends' headaches have been our bureaucratic style of work, low working efficiency, and practices that are not in accordance with the objective laws of China's economic system. In fact, the above-mentioned practices are hindering business negotiations and economic cooperation. China is determined to carry out reform of its economic system. That means we are going to get rid of these and other obstacles for the purpose of realizing the four modernizations program. However, the reform is not easily achieved because China is such a huge country, and its reform is a very complicated process. To succeed, it is necessary to carry out investigation and research, to find the ways and means and to accumulate experience for the intended reform. So far, there isn't any tested and comprehensive reform plan. We have only collected some ideas, different drafts, and small-scaled trial reforms in certain localities. Therefore, it is on this basis that I will discuss the reform of China's economic management system. The question of foreign trade and other foreign economic affairs will be dealt with by my colleagues. I would like to begin with an introduction of China's domestic economic system, its historical development, the major problems, and the goals of the current reform. This should provide the necessary background for the detailed discussion that follows.