PUBLICATIONS & REPORTS

Contents Introduction

China has experienced a huge economic transformation due to economic reform. First, was the ownership transformation. In the process of China’s economic transformation from planned economy to market economy, the state-owned enterprises (SOEs) became more and more incompetent and weak, decreased in size and were replaced by other sectors, such as Joint Ventures, wholly Foreignowned enterprises, private companies, and TVEs (Towns and Village Enterprises). Second, was economic structure transformation from agriculturally dominated economy to an industrial and service one. During this process, there was a huge labor migration, especially rural laborers moved into cities. It was estimated that there were more than 80 million rural populations on the move, among which 20-30% lived in 25 cities with population over 1 million.