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WORLD ECONOMIC RESTRUCTURING AND CHINA ’ S ECONOMIC TRANSFORMATION

Since 1978, China’s economic system has undergone a 20-year-plus market-oriented reform. Over that period, economic evolution and structural transformation were mostly driven by domestic factors; now however, they are increasingly influenced by economic globalization and worldwide industrial progress. For the 21st century, it is likely that Chinese economic development will be increasingly influenced by the world economy, especially the economies of other Asian nations. The Chinese economy will rest on China’s strategy for involvement in this process. It is an interactive process. Understanding this process will help in creating a better world economic structure. This chapter provides a brief analysis of economic globalization and worldwide economic structural improvements, an analysis and illustration of challenges and choices facing China, and focuses on possible Chinese economic developments.