China's Economy

1. How was China’s approach to economic transitions different from that of most of the other socialist countries?

The main difference between China and other socialist countries is the degree of change. China, compared to other countries chose a gradual transition rather than the radical transition chosen by other socialist countries.
Basically, the Eastern Europe nation reformers wanted to change their economies into the modern economy as quickly as possible. This was because of the distrust of the previous system of communism. Thus this political, social and cultural change allowed these nations to build a new system completely from scratch. This radical change is also called the ‘big bang’ referring to the completely new start. The Idea behind this approach is that the economy would undergo losses in the beginning of the transition and will make up for it later in the long term economy. However it turned out that the costs were more than expected.
On the other hand, the Chinese were slower and more cautious towards their transition approaches. The reformers of China saw that their situation was rather different from that of other nations. So they chose a gradual approach opening their economy slowly to other nations and alleviating the pressure on individuals and private corporations. Basically the Chinese economy transferred their system, first focusing on what problems they needed to solve from the original socialist system and then changing the original system into more effective ways of the marketing system. This process allowed the Chinese to transform into a stable economy without the provoking social and economic unrest.

  2. The author mentioned the character of Chinas gradualist transition (First phase reform) mainly in Chapter 4. How many key features did he mentioned on China’s transition? And what are they?

The first reform was throughout the 1980s and the second through the 1990s. The first phase can be simply described as a cautious...