This paper examines the impact of the 1978 economic reforms on the soc
ialist nature of the Chinese city, using Guangzhou, one of the most op
en cities in China, as a case study. Despite a reorientation of Guangz
hou's role as a trade center and port, labor is still predominantly en
gaged in the secondary sector with a strong emphasis on heavy industry
. Tertiary activities have only recently attained an equivalent level
of importance during the early Communist period and exhibit a noticeab
le dearth of the more advanced forms of tertiary activities, such as f
inance, insurance, and real estate. The spatial structure of the city
of Guangzhou has developed according to a State-approved Master Plan w
ith socialist influences and has evolved into three interdependent lin
ear clusters separated by agricultural land and linked by west-east-ru
nning highways and railroads. Residential differentiation is based on
occupation types which are related to the land use in the city. The ci
ty planners continue to practice the socialist method of planning, inc
luding standardization, city-size control, and application of the neig
hborhood unit concept. The economic system of the city is still firmly
based on public (state sector) production. Guangzhou exhibits the cha
racteristics of a city in transition from a planned system to a market
-oriented economy and highlights the political-ideological conflicts o
f urban development in post-reform China.