Comparison of China and Russia's System Changes in the Progress of Economic Transition

Abstract

In the process of transition to a market economy, Russia has made radical institutional changes, overemphasizing speed and freedom, leading to an economic recession, monopoly prevailing, and institutional changes out of the control of the government; China is carrying out gradual changes in experiments. Beginning with rural land reform with the least cost of trial and error, it was carried out in stages and steps to achieve stable economic growth. Market demand drives institutional changes. The government has always grasped the direction and path of institutional changes. But, Russia's market-oriented reforms made property rights clear and have shown a certain growth advantage as a late-comer; China's gradual changes also ace the dilemma of how to resolve deep-seated contradictions and transcend deep-water areas. A single model of institutional change cannot achieve the fundamental goal of economic transformation. China and Russia need to study each other's reforms and transformation processes and learn from each other's successful experiences to promote their development.