The Chinese economy has been undergoing radical changes and reforms shifting from a centrally planned to a socialist market economy system since 1978. These reforms include price stability, market liberalization, fiscal decentralization, creating a diversified banking system, stock markets development, increased autonomy for state enterprises, increased private sectors, and an open door policy for the trade and investment. Most significantly, China relaxed its restraints on foreign trade once it entered to the World Trade Organization in 2001.