Can China Reform Its Economy?

It is furiously trying to create an economic superpower by transforming state industries. That may not be enough

By any measure, it has been one of the most breathtaking economic transformations in history. In only 19 years since China opened its doors to the outside world, what once was a destitute, hermetically sealed museum of Marxist utopianism has evolved into an explosively entrepreneurial powerhouse. The ensuing years of hypergrowth have left China with one of the world's biggest stashes of foreign reserves and a trade surplus that has many Americans fretting about a second Japan. And perhaps most remarkably, while comrades in Eastern Europe have been swept away, China's Communist Party has managed to stay solidly in power.

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