Editor's Introduction

This second part of a two-part issue on China's private economy in >i>The Chinese Economy>/i> introduces readers to some of the range of debate that has developed in recent years around the rapid development of the private economy. Although economic trends suggest that the private economy will continue to grow rapidly in the coming years, these articles suggest that both practical problems and ideological objections are likely to shape the pace and role that China's private economy will play. For instance, the first article translated here, "A Research Report on the NonâState-Owned Economy in Our Country," by three researchers of the "NonâState-Owned Economies" Research Group of the State Planning Commission, presents a very positive picture of the role that the private economy is playing (and will play) in China. This positive assessment is itself interesting because the State Planning Commission has traditionally played the role of bulwark of the planned economy. As positive as the picture portrayed by the authors is, they nevertheless also note the ways in which the private economy clashes with China's social structure and culture, both traditional and contemporary. The areas of conflict include a weak legal tradition, a diminished moral sense that guides activities in this sector, and cultural biases that emphasize personal relations and work against marketizing forces. Such weaknesses can be corrected only over a long period of time.