China’s Economic Reform Pattern: Fundamentals of “Infinite” Transition

Abstract

Chinese “transition to market” looks “infinite” with reforms each time apparently embracing new and deeper layers while conclusive systemic transformation remains unachieved. Chinese politico-economic structure overall looks sustainable and yielding to reform with the latter, however, invariably unfinished. The conundrums of the Chinese party-state vitality and its economic “infinite” transition can be explained by looking at the patterns of China’s “market oriented” price-setting reform. This reform took place prior to most of other institutional alterations, thus having deep structural impact on China’s “transition to market”. Each round of “market reforms” in China is invariably designed to secure the party-state political and financial monopoly in order to dominate multiplied “tracks”. This is clearly not centrally planned economy anymore. However, calling it “market” would be a big advance, since the underlying leverage which integrates it is still predominantly command-administrative by its nature.