This book explores the key issues of the Chinese economy during its transition to a market and industrialized economy, and provides solid theoretical foundations and insightful policy guidelines to resolve these issues. Through examining the interrelationship between the government, enterprises and the market, the book presents an in-depth discussion on resource allocation, industrial structure, institutional innovation and economic fluctuation in current Chinese economy under the condition of disequilibrium. It allows readers to retrace the innovative and bold contributions. Professor Li has made to the success of China' s economic transition.