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The traditional Chinese planned economic system was formed during the first several years of the founding of PRC. Under this system, all sorts of behaviors by individuals, economic organizations and administrative organizations for their interests restrained vigor of the economy. Cost of this system was extremely high, but its efficiency was rather low. Reform started in the late 1970s has taken on features of gradual progress. The period before 1992 was the double-system stage, and afterwards has been the overall market economy stage. At present, framework of Chinese market economic system has taken its initial step, but its reform is not thorough. Several inertia factors and thinking methods in the traditional system still have impact on distribution of economic resources, and on behaviors of individuals, enterprises, and government, especially state-owned enterprises and departments

Thirty Years of Chinese Reform --- Transition from Planned Economy to Market Economy