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People's Daily Online>>Special Coverage >> China Studies >> Cooperation >> Economy and Society

The Multiple Transformation and Challenges That China Faces

(People's Daily Online)

14:54, August 02, 2011

Since reform and opening up in 1978, China has been in a process of modernization and social transformation that are interrelated and influence each other. China’s transformation involves 1.3 billion people, among which 800-900 million are farmers. It is also a transformation of the Chinese civilization. The large population, fast speed, significant influence, wide coverage and complex problems are unprecedented in China as well as in the world.

China’s reform includes transformations in system and structure, which, reflected in political, economic, social and cultural fields, form the special and complicated multiple transformations in China’s modernization. First is economic transformation from planned economic system to socialist market economy. Second is social transformation from traditional agriculture-based rural society to industry and tertiary industry oriented urban society, and also toward knowledge-based society. Third is political transformation from traditionally centralized system to socialist democratic system. Fourth is transformation of opening up from closed, semi-closed economic society to open economy and society in all aspects. Fifth is the transformation of social governance from monopolistic governance by the government to joint governance by the government, market and society that are complementary to and influence each other. Sixth is cultural transformation from planned economic culture of Chinese-localized Marxism to diversified cultures guided by Chinese-localized Marxism. All these are parts of the multiple transformation of Chinese society from a traditional one to a socialist modern one.

These multiple transformation have resulted in many large and substantial changes in China, which include significantly increased and diversified stakeholders, growing awareness of stakeholders, unprecedentedly greater mobility of population, higher risks in economy and society; greater foreign influence, diversified information sources and greater differences in information, more distribution to non-labor factors and more power to capital-owners.

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