Also during this period, there was a fierce argument in China on whether or not the reform and opening up was actually following the capitalist path and whether China should be adopting the reform and opening up at all. Some undesirable results and corruption cases relating to the contractual operations of factories also dampened support for the reform. People had serious doubts over the future. As a result, China's reform and opening-up process stagnated at the end of the 1980s.

In January and February 1992, then Chinese leader Deng Xiaoping paid a visit to south China's Shenzhen and Zhuhai as well as east China's Shanghai and delivered a number of important speeches on the way. The key point of these speeches was to "accelerate the reform and opening up," reconfirming the market-oriented reform policy. People's doubts were dispelled and the reform and opening up was embraced.

Based on Deng's speeches, the CPC held the Third Plenary Session of its 14th Central Committee in November 1993 and made "building a socialist market economy with Chinese characteristics" the overall goal. After that, China implemented a series of important reform measures.

In 1994, many state-owned enterprises began to embark on setting up a modern corporate governance system," and most of them transformed into joint stock companies as a result. In the meantime, China also started financial, tax, foreign trade and foreign exchange administration reforms and issued policies on the development of the private economy, breaking the stronghold of the planned economy and further expanding the reform and opening up.

All these reform measures have liberated the forces of production and encouraged people to be more innovative and competitive, reinvigorating the Chinese economy as a result.

Particularly, after China entered the WTO in 2001, the Chinese economy has become integrated into economic globalization. The strong competitiveness that China demonstrated was unexpected by even the Chinese themselves. GDP, trade surplus, science and technological development and urbanization have all witnessed explosive growth. In 1978, China's foreign exchange reserves only stood at $167 million, ranking 38th in the world. But in 2012, the figure reached $3.31 trillion, ranking first globally for seven consecutive years.

"The accession to the WTO was a milestone for China's reform and opening up," said He Liping, a professor of economics with Beijing Normal University. "It also marks the beginning of a period of fast economic growth in China."

Globalization

Thirty-five years ago, the Chinese economy and society were at least partially shut off from the rest of the world. Chinese citizens needed letters of reference for business trips to provinces other than their places of residence, never mind travelling to other countries.

Nowadays however, more and more Chinese are working, travelling, studying, shopping and making investments in foreign countries. The distance between China and the world has become little more than a plane ticket.

In the meantime, the Chinese market has become a favored destination for foreign investors. More and more foreigners are coming to China, doing business, studying, working and traveling.

Professor He says China's integration with the world started in the coastal areas in southeast China.

After the Third Plenary Session of the 11th CPC Central Committee in 1978, China set growth of foreign trade as one of the focal points of the reform and opening up. In 1979, China set up a special economic zone in Shenzhen, which is adjacent to Hong Kong, with the aim of attracting foreign investment and developing processing trade. In the early 1980s, China designated 14 coastal cities in the east as economic zones open to the outside world, adopting favorable policies to attract foreign investment and develop foreign trade.

These policies have also opened a new window for Chinese to learn about the outside world. Advanced management methods, technologies, products and the lifestyles of foreign countries have entered China, changing the Chinese economy and people's lives.

When the reform and opening up first started, China's foreign economic exchanges were very limited. Foreign trade was limited to purchasing certain commodities in short supply. According to the NBS, in 1978 the total volume of China's goods trade was only $20.6 billion, ranking 29th globally. The volume surpassed $100 billion in 1988 and exceeded $1 trillion in 2004. In 2012 China's trade reached $3.86 trillion, 187 times the figure in 1978 and pushing the country up to second place. The country's exports and imports of goods accounted for 11.2 percent and 9.8 percent of the world total respectively.

Development of foreign trade has gradually alleviated the shortage of foreign exchange, management skills and market demand that seriously restricted China's economic development, and foreign trade has become one of the engines that drives its economic growth. A large number of international brands have entered China and are well accepted by consumers. Most of the cars running on Chinese roads are made by international brands.

Entry into the WTO acted as a catalyst for China's thorough integration with the world. Foreign capital streamed into China, and products made in China also made appearances in the global market, making China the "workshop of the world." According to U.S. figures, among all household goods in the United States, nearly half are made in China.

According to figures from China's Ministry of Commerce, from 1979 to 2012 the capital inflow to China totaled $1.28 trillion, second only to the United States.

China not only attracts foreign investment, it also encourages Chinese companies to invest abroad. In 2012 Chinese companies made $87.8 billion in direct overseas investment, the third largest in the world. By the end of 2012 China's total overseas investment had totaled $531.9 billion.

Through attracting foreign investment, expanding foreign trade and making overseas investment, China's economic ties with the world are becoming deeper and deeper.

In September 2013 the China (Shanghai) Pilot Free Trade Zone was established, marking a deeper opening up for China. Its integration with the global market will be further expanded. Professor He commented that this is a demand of the present market-oriented reform, and also an imperative for integrating with international investment liberalization. Since China is the world's second largest economy, every important economic policy it makes will influence the global economy.