Perfecting the Foundational Institutionsfor Market Economy: ReformAchievements and Path to ChineseModernization

Zhao Zhenhua*

Department of Economics at the Party School of the Communist Party of China (CPC) Central Committee (National Academy of

Governance), Beijing, China

Abstract: This paper defines the core connotations of the foundational institutions formarket economy and briefly reviews the establishment and improvement of China’s marketeconomy system. It highlights the significant achievements China has made in this regardsince reform and opening-up in 1978, including the development of relatively completesystems of the market economy, the orderly and stable operation of the market economy, thesustained and steady growth of the national economy, and the deep-rooted recognition ofthe foundational institutions for market economy. Furthermore, it discusses the importanceand necessity of further improving these foundational systems for China to build a highstandardsocialist market economy, achieve the ambitious goal of becoming a modern andpowerful nation on schedule, and gain a strategic advantage in international competition.Based on an analysis of the key challenges currently present in China’s market economysystems, this paper outlines major tasks and policy measures for further improvements,including enhancing the property rights system, market access regulations, fair competitionmechanisms, and improving the regulatory framework for the social credit system.

Keywords: Foundational institutions for market economy; reform and opening up;

JEL Classification Codes: E60; O53

DOI: 10.19602/j.chinaeconomist.2025.05.01