China's Economic Transition Risk-based Security Mechanism

To a certain degree, the process of social development should be regarded as our risk-avoiding process. With economic and social development, some nontraditional risks generally became factors for threatening national security, particularly in the latter half of 20 century, when a number of socialist states transformed their planned economy to market economy. The new economic system brought these states with new economic risks which they had never been confronted with. As far as China was concerned, this state enjoyed the tremendous achievements resulting from the 30-year economic reform, and on the other hand, the double risks for transformation and globalization accumulated numerous risks for the state's economy. Therefore, a security mechanism for national economy would have to be built, in order to enhance the current achievements and to avoid these risks so as to promote more smooth and more orderly reform.Broadly speaking, a state in transition was confronted with two kinds of risks during its process of transformation, i.e., common risk and systematic risk. Generally, common risk would influence economy effectiveness; however, systematic risk in the result of the reform system would lead to the failure of economic transformation. As for China, reasons for systematic risk could be concluded as the design defects in market system and market rules, the instability and speculativeness of virtual economy, and the crisis of international economy and the impact of inflation and deflation. Consequently, the security mechanism for China would be included adjusting the state's market system and market rules, improve macroeconomic regulation, and creating nation's economic security system in terms of withstanding economic globalization.In the process of transformation, resulting from the risks for transformation, the great threats to family and personal development needed to be thoroughly considered. During the 30-year transformation in China, personal economic risk was in the tendency of unceasing rising. However, not only was the socially disadvantaged group unable to bear the risk, but also the majority of Chinese people felt hardly to live through it. As a result, solutions of solving livelihood issues needed to be the orientation to the China's economic transformation in the next 30 years. First of all, to avoid the common risk relating with age, diseases, and disabilities, the current social security system needed to be redesigned, by modifying social security system for =cross-generation in order to spread risks. Then, to avoid the risk for personal property, i.e. risks for career and building value which directly affected the development and even survival of people, the sustenance insurance and building insurance which be embodied by commercial insurance needed to be modified, as a beneficial supplement to social security system. The combination of social security system, commercial insurance, and family security, would become an important component in the security mechanism for national economy.This research aimed to discuss nation's economic security issues from the pointview of risks for transformation by relating China's economic transformation with international economic environment. The results of this research were creating a security mechanism for national economy on the level of both-state and people, providing a path of retaining internal and external system to protect China's economic security, and developing theory-support systems and policy suggestions for constructing security mechanism.