| Sumario: | This article starts with a brief comparative analysis of China and East Europe in terms of their stark differences in approaching economic reform and social welfare. Perhaps China has the benefit of learning, from the 1989 Tiananmen Incident, of the undesirable social costs incurred by economic reform. Henceforth, it has adopted a pragmatic and gradualist approach towards economic reform. This article reports the findings of an attitude survey in Shanghai, which by and large are compatible with the gradualist approach of the Chinese Government toward economic reform and social welfare. The survey finds that the Chinese in Shanghai positively rate economic reform in light of the benefits that it has brought about, but they are also aware of the large income disparities caused as a result. In the light of the evidence, the article suggests that China's economic reform has not transformed people's beliefs to be in line with the market system. The Chinese are still, in general, in favor of a large role for the state in welfare and they themselves are not willing to shoulder heavier welfare responsibility. In the concluding section, the article explains this mixed pattern of public perceptions and pinpoints the likely developmental trend of China's welfare system.
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