STRUCTURAL TRANSFORMATION OF CHINA ECONOMY

People’s Republic of China which was founded in 1949 was in the position of a self-enclosed economy. Together with the economic reforms carried out in 1980s, China has entered into a transition period from socialist economic system to free market economy. Together with these reforms, China became a member of IMF in 1989 and World Trade Organization in 2001. As a result of these international expansion policies, the country takes the attentions with its high growing rates and becomes the focus of the international capital. Especially after the country became a member in World Trade Organization in 2001, foreign trade volume has expanded and direct foreign investment flow is increased. The structural transformation of the Chinese economy is discussed in this study because of the outstanding grow in Chinese economy in recent years. The purpose of this study is to analyze the structural transformation occurred in Chinese economy in the time from 1978s till today.