IDEAS home Printed from
   My bibliography  Save this article

The Government's Role in China's Market Economy


  • Guo Shuqing


The government has played an extremely important role in the processes of transitioning the economic system from one track to another over the past twenty years; this is because, on the one hand, while the traditional planned economic system had been completely dominated by the government, on the other hand, reform and opening up had also been initiated and propelled by the government. In addition, in regard to the objectives and modes of reform, the overwhelming majority also believes that we should adopt a mode of reform that will produce a kind of market economic system in which the government will play a very positive role. In the wake of the Asian financial crisis, however, there has been a major change in people's understanding in regard to this particular point. People seem to have begun harboring doubts about others, and, at the same time, their self-confidence has begun to be shaken, and even the very existence of a so-called Asian miracle has been brought into question. What remains certain and has not changed is the affirmation that further steps should be taken to marketize and monetize the national economy, to further standardize and control the government's and the enterprises' behavior, and to continue to enhance the degree of openness to the outside world. Nonetheless, all these are matters of the most general principles, and how to bring these principles to concrete realization remains a matter of a great deal of discussion, debate, and definition. This article is an attempt precisely in this regard.

Suggested Citation

  • Guo Shuqing, 1999. "The Government's Role in China's Market Economy," Chinese Economy, Taylor & Francis Journals, vol. 32(5), pages 26-68, September.
  • Handle: RePEc:mes:chinec:v:32:y:1999:i:5:p:26-68

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:32:y:1999:i:5:p:26-68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.