What Are the Key Economic Institutions in China‪?‬

The functioning of economic institutions is vital to all economies. This article examines the current structure of economic institutions in China. The objective is to evaluate the viability of economic institutions in providing the necessary framework for the country’s rapid economic growth. The economic institutions that make up the Chinese core economy are:

1. People Communes [renmine gongshe]
2. State-Owned Enterprises (SOEs)
3. Town & Village Enterprises (TVEs)
4. Management Buyouts (MBOs)
5. Foreign Invested Enterprises (FIEs)

China was the largest economy in the world before the end of the 19th century but then lost ground to Western nations that established the rule of law and free trade.

To understand China’s past and future development, one has to examine its institutions.