<P> Economic reforms introducing market principles began in 1978 and were carried out in two stages . The first stage , in the late 1970s and early 1980s , involved the decollectivization of agriculture , the opening up of the country to foreign investment , and permission for entrepreneurs to start businesses . However , most industry remained state - owned . The second stage of reform , in the late 1980s and 1990s , involved the privatization and contracting out of much state - owned industry and the lifting of price controls , protectionist policies , and regulations , although state monopolies in sectors such as banking and petroleum remained . The private sector grew remarkably , accounting for as much as 70 percent of China 's gross domestic product by 2005 . From 1978 until 2013 , unprecedented growth occurred , with the economy increasing by 9.5 % a year . The conservative Hu - Wen Administration more heavily regulated and controlled the economy after 2005 , reversing some reforms . </P>
<P> Economic reforms introducing market principles began in 1978 and were carried out in two stages . The first stage , in the late 1970s and early 1980s , involved the decollectivization of agriculture , the opening up of the country to foreign investment , and permission for entrepreneurs to start businesses . However , most industry remained state - owned . The second stage of reform , in the late 1980s and 1990s , involved the privatization and contracting out of much state - owned industry and the lifting of price controls , protectionist policies , and regulations , although state monopolies in sectors such as banking and petroleum remained . The private sector grew remarkably , accounting for as much as 70 percent of China 's gross domestic product by 2005 . From 1978 until 2013 , unprecedented growth occurred , with the economy increasing by 9.5 % a year . The conservative Hu - Wen Administration more heavily regulated and controlled the economy after 2005 , reversing some reforms . </P>
when did china transition to a market economy
when did china transition to a market economy
began in 1978
began in 1978