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<正> SummaryAfter describing the economic institutions for agriculture and industry in China before 1978, this paper points out the reasons for and the key elements of economic reform. It then discusses the major issues currently being deliberated by the leading economic reform officials regarding reform of the price system, the administrative structure of state-owned enterprises, the banking system and macroeconomic control mechanisms, and foreign trade and investment. Finally future prospects of the reform and of China’s economic development will be indicated.The transformation of the economy of the People’s Republic of China from a planned to a more market-oriented economy is perhaps the most significant development in world history during the last quarter of the twentieth century what was the Chinese economic system like before 1979? why were reforms introduced? what are their essential elements? what are the important issues currently addressed by the reform officials? what are the future prospects? These are the questions to be answered in this paper. The Chinese economy is a complicated entity with many dimensions. Space permits discussion of only those aspects pertinent to the transition to a more market-oriented economy.