China on the Threshold of a Market Economy

China's entry to the World Trade Organization (WTO) will be as important to the 21 st century as its communist revolution was to the 20 th. Its rapid economic growth and increasing engagement with the world's economic and political communities are welcomed by some but viewed with concern by others. How will China use its newly acquired influence? Will it challenge the existing world order and its one remaining superpower, the US, or will it grow to accept the current international rules of the game? An answer to these questions depends on how well China deals with the considerable challenges that now await its further economic and political transition. To meet these challenges successfully will be no easy task. Certainly in comparison with the former Soviet Union, China's progress has been impressive and its leaders have argued that its gradualist approach is preferable to the 'shock therapy' policies that have caused a precipitous collapse in economic activity and living standards for many in Russia. China's leaders argue that an essentially market economy operating under centralized political control is the most effective means for development.