THE IMPACT OF A MARKET ECONOMY AND TRADE RELATIONS FORMATION BETWEEN RUSSIA AND CHINA ON THE DEVELOPMENT OF THE MIDDLE CLASS IN RUSSIA AND CHINA IN THE PERIOD 1991-1998

THE IMPACT OF A MARKET ECONOMY AND TRADE RELATIONS FORMATION BETWEEN RUSSIA AND CHINA ON THE DEVELOPMENT OF THE MIDDLE CLASS IN RUSSIA AND CHINA IN THE PERIOD 1991-1998

Anastasiia Parfenova1

East China University of Science and Technology1

nastya_parf@mail.ru1

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Abstract -This study examines how trade ties and the shift to a market economy affected the growth of the middle class in China and Russia between 1991 and 1998. It highlights the historical background of this time, which was marked by the fall of the Soviet Union and China's slow transition to an economy based on markets. The main goal is to comprehend how trade relations and market economies shaped the development of the middle class in these developing countries.

A theoretical framework outlining the distinctive characteristics of transition economies and the societal shifts they entail is included in the research. It offers a thorough examination of the social and economic changes that Russia and China underwent throughout this period, focusing in particular on the differences in their reform strategies. A comparative analysis is also conducted on the emergence of the middle class, the importance of small firms, and the impact of trade links between these countries. In the end, this research clarifies the complex interplay between trade ties, economic reforms, and the growth of the middle class in China and Russia during this pivotal time, with implications for more general policy issues.