As a response to dissatisfaction with the country's planned economy, the Chinese government introduced major modifications in its economic system, allowing the development of private markets while maintaining overall political control.

True or False?

True

Explanation:

Chinese economy started to be reformed in the late 1970s, this process is known as Chinese economic reform or Opening of China. The chairman of the Chinese communist party that started the reforms was Deng Xiaoping and he called his economic model the socialist market economy.

Before the reforms, Chinese economy was completely controlled and planned by the central government and the ruling communist party, but during the early 1970s China suffered a very deep recession. As a way to end this recession, the Chinese government started the reforms which resulted in Chinese economy growing steadily at very high rates. Currently China is the second largest economy in the world and the reforms continue, continually adopting more capitalistic style reforms.