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BIZCHINA / Macro Economy

Criteria of Market Economy

(china.org)
Updated: 2006-10-09 16:11

The questions "What is a market economy?" "What is a standard market
economy?" or rather "What are the standards for a market economy?" would
naturally pop up when people are talking about some countries being
market economy countries and some enterprises being market economy
enterprises. For if not so, how come the conclusion as to whether a
country is or is not a market economy country?

As a matter of fact, the existence of criteria of a market economy is
controversial. Each one gets a reason to support his or her own idea. We
hereby accept a proposition, i.e., criteria of market economy do exist,
put forward due to anti-dumping cases involved in international trade,
but also believe that the criteria are established on a relative basis.

Some well-recognized market economy countries, we have discovered,
practice various economic systems. It is difficult to say, therefore,
that certain country is a standard market economy country, while any
other country not exactly the same cannot be regarded as a market economy
country. Due to different traditions and development phases, countries
inevitably differ in the form, even the contents of their market economy
to a certain extent. The existence of differences does not mean there are
no market economy criteria, however, and it is unacceptable to deny the
existence of market economy criteria due to such differences. As an
economic system in human history, the market economy came into being in
modern times and is flourishing nowadays. It differs from either
historical self-sufficient economy or planned economy, and certainly has
its intrinsic definition that refers to the commonness of various market
economy countries at different development stages. The commonness, being
sorted out from various market economy countries, shapes a framework,
which will facilitate us to judge a country's status of market economy in
anti--dumping cases. While it is reasonable to admit that there are
certain criteria of market economy, it is incorrect to rigidly apply such
criteria in an arbitrary way. The framework of market economy criteria is
a range of fundamental characteristics of market economy, a status
section with certain allowable differences and variations, and a varied
status section of market economy taking the commonness of different
countries' market economy as a dominant factor and supplemented with
variations, rather than an absolute concept, a point or a line.

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