TNAG-2293-FCO40-3305-Official-visits-from-Hong-Kong-to-China-1991 — Page 89

Economic Background

39

-4.

Since 1978, the

economic system had been

incompatible with

economic

becoming more and more

reform.

When the crisis of 1979 and other subsequent

crises were studied, the conclusion was that irrespective

of the existing social system, the economic system played

an essential role in adjusting the economy and ensuring a

bright future.

5..

Looking at the history of the world, it was

possible for a country to leap over the capitalist period

from feudalism to socialism.

backward country could not

economy.

However, an economically

Consequently, China

leap over a commercial

was now practising a new

combining planning and

Whereas the western capitalist

idea, namely a mixed economy combining

commercial elements.

economies had absorbed

́(sic)

- p

some reasonable parts of Marxism

and elements of planning in the development of

their economies, China was moving towards a socialist

economy

with

a commercial element i.e. a planned

commercial economy system. By doing so, China could

absorb the positive aspects of capitalism to develop its

economy.