市场经济
How to Understand
市场经济 refers to an economic system where the production and distribution of goods and services are determined by supply and demand in a free market, rather than by government planning. It contrasts with planned economies, where the state plays a central role in economic decisions.
The word is composed of 市 (shì, market), 场 (chǎng, place or arena), 经 (jīng, manage or handle), and 济 (jì, prosperity or economy). Together, they describe an economic system that operates through market mechanisms.
Market economy is a fundamental concept in modern Chinese economic policy, especially since the reforms of the late 20th century. It is often discussed in relation to China's development and its integration into global trade systems. Understanding this term helps learners grasp key aspects of China’s economic structure and policies.