The central theme of this paper is that China’s macroeconomic development can be divided into three distinct stages with significant trend changes. Market-oriented reform and opening to the outside world provide main driving forces for the convergence. However, the gradual reform and some inappropriate policies have caused serious ups and downs in China’s macroeconomic performance. The central theme of this paper is that China’s macroeconomic development can be divided into three distinct stages with significant trend changes. Yet-the marketal reform and opening to the outside world provide main driving forces for the convergence. However, the gradual reform and some inappropriate policies have caused serious ups and downs in China’s macroeconomic performance.