This course studies key economic institutions of China that have emerged in the course of transition from a planned to a market economy.  These institutions are not necessarily the first-best choices from the perspective of conventional theories of market economy, but they might overcome some typical institutional weaknesses of transitional economies.  They include the double-track pricing and allocation system, local government ownership of firms, fiscal decentralization and yardstick competition among different regional jurisdictions, etc.  Drawing on the major contributions in the economics literature, the costs and benefits of adopting these institutions by China will be analysed.