Chapter 3 reviews China’s four-decade reform and opening-up process, emphasizing the transition from a planned to a market-oriented economy. Using Shenzhen as a representative case, the chapter illustrates how institutional innovation, property rights reform, legal development, and trade liberalization have collectively driven economic modernization. It traces the evolution of reform through multiple phases, enabling the growth of a mixed-ownership economy, capital market formation, and global economic integration. The chapter also emphasizes the importance of maintaining a dynamic balance between market mechanisms and macroeconomic regulation to support high-quality, innovation-led development in the new era.