In what ways does the present Chinese economy differs from its command economy?
The present Chinese economy differs from its earlier command economy in several significant ways. Under the command economy based on the Soviet model, China had severed links with the capitalist world, relied on state-owned heavy industries, and followed a policy of import substitution with minimal international trade.
In contrast, the present economy introduced market reforms step by step without 'shock therapy'. Privatisation of agriculture (1982) and privatisation of industry (1998) replaced state ownership. China ended its isolation through the 'open door' policy and created Special Economic Zones where trade barriers were eliminated and foreign investors could set up enterprises.
Today, China has become the most important destination for foreign direct investment (FDI) and has large foreign exchange reserves. Unlike the command economy with minimal trade, China now has a phenomenal rise in foreign trade. However, the state continues to play a central role in setting up the market economy.
Explanation
The answer draws directly from the textbook context which contrasts the Soviet-style command economy (state-owned industries, import substitution, isolation from capitalist world) with the reformed economy (privatisation, SEZs, FDI, open door policy). The key point is that China transitioned gradually without 'shock therapy' and the state still maintains a central role unlike a complete shift to free market.