Minister of the National Development and Reform Commission Ma Kai said on July 12 at a high-level reform forum in Beijing that China has basically completed the transition to the socialist market economy from highly centralized planning economy after 26 years' endeavor on reform.

Ma asserted that China has successfully established the fundamental economic system in which the public ownership economy plays the leading role and co-exists and shares opportunities with the economy in various other ownerships.

As learned, by the end of 2004, more than 50 percent of the nearly 3,000 state-owned or state-controlled large major enterprises had turned into stock-sharing companies. Meanwhile, the booming private sector has provided four-fifths of new job opportunities and generated one-third of GDP.

Ma observed that as a result of 26 years of reform, 96 percent of retail commodities, 97 percent of agro-and sideline products and 87 percent of capital goods are priced by the market.

The system of macro-control is basically well established. The mechanism is in place, which makes synergy of national planning, fiscal policy and monetary policy possible.

It is learned that from 1978 to 2004, China's GDP rose from some 150 billion USD to more than 1.6 trillion USD, with an annual increase of 9.4 percent.

China has overcome numerous difficulties on its way of 26 years' reform. However, Ma recognized that China's reform has entered into a new stage which features tackling key problems. The government, said Ma, would place priority on, among four others, improving macro-control system and further opening-up.

By People's Daily Online