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Price: $ 22

China has made remarkable strides toward establishing a market economy over the last decade. The decision to shift from central planning to a "socialist market economy" was ratified by a national congress in 1992, and the nation's constitution of 1982 was modified to emphasize this shift. Mechanisms were created to reduce the scope of state intervention; these included progressive price decontrol, expanded distribution systems, and the establishment of sophisticated commodities markets.

This study evaluates the extent to which China, through adoption of such mechanisms, has established well-functioning markets. It examines China's internal markets and market segmentation and the changing role of the state in new systems of distribution. The report also discusses the present regulation of markets in a changing environment.

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