The Causes and the Consequences of China's Economic Growth Since 1978

Running head: CHINA’S ECONOMIC GROWTH
The causes and the consequences of China's economic growth since 1978
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CHINA’S ECONOMIC GROWTH
The Chinese communist party had very early success in mobilizing the people of the
country. They gained their power in the year 1949, but they saw it that the party had to face
many difficulties (Bloch, Rafiq and Salim 2015). With the disastrous results of the Great Leap
Forward along with the three years, natural calamities faced which. The reformists in the Chinese
government came up with the idea by the help of which a market-oriented rewarding system was
developed in the country. This system did not survive in the country by introducing Mao Zedong
in the country. He aided in mobilizing the Little Red Guards who helped him in regaining his
power and also regain his strength in the country (Bloch, Rafiq and Salim 2015). After Deng
Dehuai took over the reign in the country, he instituted Comprehensive Economic Reform in the
country in 1978. There was a significant change in the ideology in the country (Chow 2017).
The economic growth of a country mainly depends on the various rates which have been
allotted to the primary inputs of the country. The principal contributions are tangible capital, total
factor productivity and labour. The economic growth of the country has been on the rise since
implementing the high rates in the residential development the national saving rate, which was
above 35 per cent (Zhang and Gao 2016) mainly enabled which. In the era of early 1990s, the
savings rate of the country increased to 40 per cent. IN present time we have seen it that the price
has even touched as high as 50 per cent (Zhang and Gao 2016). These high rates of the savings
rate in the country suggest that the company can finance all the different domestic needs of the
country. The state does not have to depend on the foreign capital inflows, which are generally
fickle (Friedman 2017). The nation need not borrow any kind of financial help from any other
countries during any sort of financial crisis the country faces which. This suggests that the
company is immune from any of the global financial crisis, and the state can quickly implement
any kind of economic disruptions in the country. The main advantage of the country is that the

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CHINA’S ECONOMIC GROWTH
company have an ample supply of labour (Chen, Liu and Lu 2016). There is no presence of any
kind of shortage of employment in the country for the conduction of any jobs in the country,
starting from entry-level positions to the situations which require higher skills, the company
comprises labour which can be implemented in employment in any levels (Chen, Liu and Lu
2016). The Chinese GDP is greatly affected by this factor, and it has been in a higher position for
a long time in the country. The demand in the domestic sector of the country is enormous owing
to the massive population in the country (Shao, Huang and Yang 2014). The considerable
population of the country gives the state the option of implementing services in different sectors
and also with producing vast quantities of products for the consumers in the country.
The intangible capital of the country is also greatly affected by the massive population of
the country, and the productivity level of the country also increases (Shao, Huang and Yang
2014). The various customer demands in the company like housing as well as transportation as
well as various consumer goods enable the country in realizing the fact that multiple scales of
economies in the country mainly depends on the substantial consumer demands of the country.
The presence of consumer market in the country is also allowing the country in implementing the
various facts by the help of which cumulative output of the different products of the company
increase and the cost of per production of the products in the country decreases (Yao 2015). With
the implementation in the vast domestic market in the country, there is also the presence of other
immense scopes for the country enjoy having lower dependence on external factors. Just like the
economy of any other countries in the world, the import and export rates of the country also
fluctuates. But with these fluctuations, it generates no effect on the economy of the country from
the domestic market of the state of consumer goods. The country does not have to depend on any