Abstract: The original intention of the dual pricing system is the combination of release and adjustment, i.e. to lift the control over the prices out of the plan and beyond the plan and to adjust the prices within the plan, so as to finally complete the transition from the planned pricing into the market pricing. The dual system was later misinterpreted as a product with two prices. Practice has proved that the dual system is a pioneering genius, reflecting the characteristics of China’s institutional transition. Such a system is still having its significance in the process of promoting the reforms of resource prices and factor prices, even the reform of the political system in China.

Key words: dual system; combination of release and adjustment; resource price reform; factor price reform; political system reform