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Accounting in China in Transition, 1949-2000
Allen Huang , Ronald Ma
During the period of Mao's rule, China experienced two violent political mass movements, which inflicted great suffering on the nation. There were few accounting developments in this period. In contrast, Deng's China set itself the ambitious task of transforming the centrally planned and centrally controlled economy into a market economy "with Chinese characteristics." There has been an accompanying development in Chinese accounting, in which its key role of serving the Government's planning and control needs is transformed into serving the information needs of decision-makers in the market-place.
The economic reform in Deng's China has made considerable progress, which is particularly evident in the urban and coastal regions. The transition from a planned economy to a market economy is incomplete and certain vexatious problems have yet to be resolved. The resolution of the state owned enterprise reform issues will set a precedent for the further reform of Chinese accounting.
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