This thesis examines the economy of China as a whole; and how does the macroeconomic policy work in different sector of the economy. This paper contains four chapters; the first chapter is an overview of the Chinese economy, In this chapter we examine the economic overview of China after the economic reforms made in 1978; we discuss: what reforms have actually been applied, what have been the main contributions of these reforms to the Chinese economy, what is the status quo of the economy and what challenges have the economy been facing currently, how is market socialism in China, and what models has the socialist economy been using and how efficient were the outcome of these models…