Zhaotong

With the dismantling of the system vision of economy and to look further into reform of the economic system, the product, the capital, the service of work and the markets of technology appeared after the different one in China. Maintaining China its system vision of economy transformed into first socialist system of market economy.

Consequently the function of standardization of the market was reinforced enormously.

Before the reform and the opening were presented, the majority of the products on the Chinese market had the price indicated by the state.

But since the beginning of the reform and the opening, with the expansion of the balance of the market of the products and the change of the relations between supply and demand of the products, the state carried out the reform of the prices point by point and according to the forecasts.

The repair of the prices by the state follows three forms: the repair of the price by the state, the guide prices of state and the prices of standardization of the market. The price of standardization of the market was gradually 1999 relaxed.

By the evaluation of 95 percent of consumer goods and 80 percent of goods of investment had been slackened.

These prices were regulated mainly by the relations between the offer and the market demand. A socialist market evaluating the mechanism takes shape gradually.

In the system of evaluation the irrational state of basic price of product being so low was improved, and the structure of evaluation becomes more reasonable, point by point.

Comparing 1998 to 1978, the index of the selling prices to the detail of the rural industrial products increased by 3.88 times; and the index of the synthetic relative prices between the industrial products and agricultural was 59.7 percent.

Moreover, the scissors of the prices in the exchange of the industrial products for the agricultural produce were reduced.

In 1998, prices of the agricultural produce increased by 5.83 times, compared with those of 1978, and at the prices of the industrial products by 2.95 times, and their price ratio were 0.6: 1.

According to conditions’ of the market economy of market socialist, China had established a mechanism of evaluation macro-regulated and ordered by the government, and of the prices fixed to the market.