China carried out ten five-year plans from 1952 till now. The plans realized astonishing successes to make China the second largest economy entity in the world. Now China is implementing the 13th five-year plan from 2016 to 2020. All indicators prove that China’s economic growth has been 8-13 percent recently and Chinese economy experts say China is embarking a new phase called “the natural situation for economy” and China has changed from a big trade country to a strong trade country. These experts in their new concept emphasize the change from an old economic pattern based upon export and investment to a new one based on service, inciting domestic consumption and environment protection. In this new trend there will no longer be too much importance laid on economic growth rate which will range between 6-8 percent. The 13th five-year plan has five pillars: innovation, coordination, green development, sharing of growth fruits and opening. The 13th five-year plan aims at lifting China’s average income per capita in both urban and rural areas to 20000 US dollars a year in 2020, which will double the level of 2010. Meanwhile the Chinese government set the growth rate for 2017 at 6.5 percent and tried to create 11 million jobs in cities and countryside. China is still the first investment destination in Asia for it attracted in 2016 direct foreign investment evaluated 785 billion CNY.

It’s worth noticing that the private sector played an mainstream role in China’s economy in 2016 wherein it contributed by 60 percent to the whole economy scale and 80 percent to the employment and 50 percent to the tax income.

China has basically established the full socialist market economy. Market’s main role in allocation of resources has been fortified prominently. The macroscopic readjustment and control improves day by day. The framework where public ownership plays a bracing role and private sector prospers is in shaping. It’s expected that 2020 will witness birth of a relatively mature socialist market system in China.

There was no private sector in China before 1978 wherein the state-owned companies contributed by 77.6 percent and collective sector 22.4 percent. The reform and opening policy realized common prosperity of various economic elements. The state-owned companies have almost transformed to true companies while their roles in controlling, influencing and inciting the whole national economy got strengthened. There are three main sectors contributing to China’s GDP: the state-owned economy, the mixed ownership and the private economy. The state ownership has an absolute preponderance in domains like railway, civil aviation, post, telecom, supplies of water, electricity and gas in cities and other infrastructures in addition to research, education, national defense and finance. The private sector is progressing rapidly in industries focusing on high knowledge, science and technology elements instead of traditional domains like retail sales, food and services.

In 2008 there appeared for the first time private companies among 26 Chinese companies on the list of the top 500 companies of the world. The non-public ownership plays a vital role in pushing the development wherein it contributes by 50 percent in 27 from among the total 40 industrial sectors or 70 percent in some sectors. It’s noticed that the private sector has obviously surpassed the public sector in foreign trade, tax income and employment. It’s worth emphasizing that although the private sector was impacted severely by the world financial crisis 2008, it nevertheless, responded to the state’s calls not to lay off workers but to maintain their incomes and other legal rights and as much as possible even in the hardest periods. In other words, the private sector walked side by side with the government in keeping social stability and promoting harmonious development.

Chinese economic experts suggest following steps to deepen reforms of China’s economic system:

  • Combination between economic growth and adjustment of the economic structure. Concentration on improving the systematic mechanisms to promote transforming of economic growth mode.
  • Combination between improving the macroscopic readjustment and control and highlighting market’s role and concentration on exploding domestic motivation energy and enthusiasm for economic growth.
  • Combination between promoting social construction and innovating public service system, and concentration on improving guarantee mechanisms of the citizens’ livelihood.
  •  Combination between lifting economic repays and social justice and concentration on shaping systematic mechanisms to promote social harmony and stability.