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A planned economy was set up in China after the establishment of the PRC in 1949, and its reform was launched in 1978. The reform has gone on for 20 years and has achieved globally recognized success. China's economy is now in the course of transforming from a planned economy into a socialist market economy. This work summarizes the successful experiences and points out the difficulties of the deep reform and the prospects for the 21st century. Featuring historical data and material, it seeks to provide information for readers from universities, institutions and enterprises as well as government officials. The author, a Chinese economist, has been involved in the leadership of the Chinese economic system since its launch in 1979. In 1998 he was invited by the World Bank to give a series of seminars on China's economic reform, and most of the contents of those seminars are included in this book.