In 1978, almost no prices in China were determined by the market, and most production was controlled or directed by the state. Since then, the government has reduced its direct intervention in the economy and scaled back state-owned enterprises, in the process allowing more scope for market forces.
By 1999, according to one estimate, about 95 percent of retail business, together with more than 80 percent of trade in agricultural commodities and producer goods, was conducted at market-determined prices. 6  1  Bergsten and others ( 2006), p. 3. 2  World Bank (2006).